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Guest deepValue
Posted

Wow. Sham always seemed like a pretty good guy... But it's hard to believe that someone who steals $4k from their employer will never do anything shady again, so I can believe management's story that Sham has misled them in previous communication as well.

 

Reputations are fragile.

Posted

Wow, pretty crazy.  Looks like Sham just learned a very important lesson though.  If you're going to try and take some swings and be a tough guy, you better be ready for someone who thinks their livelihood is on the line to get in the ring with you and swing back hard. 

Posted

I'm all for him making restitution, accepting the blame and moving forward.  I believe in second chances.  But I'm not sure you get a second chance as a fiduciary or CEO of a public company...there is a very clear line on how you behave as a steward of capital.  And then the natural question that comes up is:  Was this disclosed to partners before they joined his fund, or to the board of Paragon before they added him?  Cheers! 

Posted

Oh no, no, come on Sham.  I've been a follower of his blog since he started it.

 

Labelled an "Aggrevated felon". 

 

I hope for his sake this isn't one of those cases of the cockroach theory.  (Where there's one there's bound to be dozens more).

Posted

I say he has not hidden anything. He has been trying to tell us for years. His name is Hesham but he goes by "Sham"  (sorry - I couldn't resist  :D :D )

Posted

I'm all for him making restitution, accepting the blame and moving forward.  I believe in second chances.  But I'm not sure you get a second chance as a fiduciary or CEO of a public company...!

 

I think that if you have a second chance then you are able to do whatever you wish. Legally of course. Clean slate etc...

 

My concern here is not the second chance but the covering up of the past...

 

One thing I haven't been able to work out - whats his connection to SAC???

Posted

I'm all for him making restitution, accepting the blame and moving forward.  I believe in second chances.  But I'm not sure you get a second chance as a fiduciary or CEO of a public company...!

 

I think that if you have a second chance then you are able to do whatever you wish. Legally of course. Clean slate etc...

 

My concern here is not the second chance but the covering up of the past...

 

One thing I haven't been able to work out - whats his connection to SAC???

 

SAC?  Where did you see that.  Cheers!

Posted

I'm all for him making restitution, accepting the blame and moving forward.  I believe in second chances.  But I'm not sure you get a second chance as a fiduciary or CEO of a public company...!

 

I think that if you have a second chance then you are able to do whatever you wish. Legally of course. Clean slate etc...

 

My concern here is not the second chance but the covering up of the past...

 

One thing I haven't been able to work out - whats his connection to SAC???

 

SAC?  Where did you see that.  Cheers!

 

I haven't - but if the caps fits......

Posted

At first I thought he was a teenager when he stole the money and I thought that while that was pretty bad, teenagers do make some pretty dumb decisions. 

 

But if I'm understanding this right, he actually stole the money when he was in his late 20's.  Is that correct?  If so, I can't see anybody rationally intrusting him with their hard earned money after knowing about this.  Seriously, what excuse is there to steal $4,000 from your employer?

 

Does anyone have a link to court docs or his plea deal?

  • 1 month later...
Posted

Again, without any particular comment, other than I find the hypocrisy in this proxy contest to be a complete misjudgment in light of what has come to the fore.  Please read Item. 2 and Item. 4...which were never disclosed in any previous filing. 

 

http://www.sec.gov/Archives/edgar/data/800286/000114420413017017/v339005_sc13da.htm

 

While I'm no fan of SED's management, I find it difficult to understand how someone can ridicule an incumbent director after their own ethical and personal failures were so poorly documented or disclosed? 

 

It seems there are many young men these days, who want to get rich quick and gain notoriety as activists, yet the most basic of ethical behavior eludes them.  The losers are the actual shareholders of these companies...from the oven to the deep fryer with executives these days!  Cheers!

Posted

Anyone owns any of these companies? Quick check reveals that Paragon technologies owns 18% of SED..yet it trades for only 4.31M..18.6% of SED stake alone worth 2.6M.

Posted

So to recap the facts (in a slightly humorous manner):

 

We have Mr. Gad, who has pled guilty to stealing $4K of company funds and siphoning another $40K of company funds through his non-profits for his own benefit, is now attacking Mr. Kidston, who is apparently grossly overpaid, has no real job function, and recently attempted to wage a proxy war that was labeled “disingenuous” and “wholly unworthy of support”...

 

It sounds like these guys are all made for each other...

Posted

Wow.  I actually thought his book was pretty good.  Sad scenario.  Hope his investors become aware of this, don't get hurt and are able to get their money out.

  • 5 months later...
  • 2 weeks later...
Posted

They were stupid!  They should have put the rights plan in place a long time ago when he owned far less.  I think Gad's got a pretty good chance of getting his slate on there with 31%+ ownership.  Cheers!

  • 4 weeks later...
Posted

Both of these stocks (SED and PGNT) have been tanking for the past 2 days. Has anyone done any work on either?

Posted

I'd prefer that too, but if a company's story, business, and management are all perfect, it is far less likely to be bought at a bargain price....

 

Obviously I understand your point, and completely agree that its a huge red flag, but it is worth looking at the board that PGNT is proposing on their slate for SED:

 

Jack H. Jacobs – Mr. Jacobs is an NBC military analyst and holds the McDermott Chair of Politics at West Point. He was among the most highly decorated soldiers in the Vietnam War, earning three Bronze Stars, two Silver Stars and the Medal of Honor. Mr. Jacobs serves on the Board of Directors of Paragon. If Paragon’s slate is elected at the annual meeting, Paragon currently anticipates that Mr. Jacobs will serve as the new Chairman of the Board of SED.

 

Dennis L. Chandler – Mr. Chandler is currently an independent advisor to private equity firms for acquiring and turning-around underperforming businesses. Mr. Chandler serves as a director of FiberMark, a fully integrated manufacturer and global distributor of fiber-based covering solutions. Mr. Chandler was previously the Chief Operating Officer of ACCO Brands, a multi-billion dollar manufacturer and distributor of consumer and commercial office products.

 

Hesham M. Gad – Mr. Gad is the Chairman of the Board of Directors of Paragon. He is also the Managing Partner of Gad Capital Management LLC, which is the General Partner of Gad Partners Fund LP. Gad Partners Fund LP is a value-focused investment partnership and the largest shareholder of Paragon.

 

Samuel S. Weiser – Mr. Weiser is the Chief Executive Officer of Premier Exhibitions, Inc., an international provider of museum quality exhibitions. Mr. Weiser serves on the Board of Directors of Paragon and is the Chairman of its Audit Committee. He was a managing director for the Hedge Fund Consulting Group at Citigroup and is a former partner of Ernst and Young. Mr. Weiser is a licensed CPA.

 

Klaus-Dieter Wurm – Mr. Wurm is an Executive Vice President of Schaefer Systems International, the largest provider of logistics systems and supply chain solutions in the world. Previously, Mr. Wurm was Vice President, Sales & Marketing for Krones, Inc., the world’s largest manufacturer of packing machinery and engineering services to the food and beverage, pharmaceutical, chemical and automotive industries.

 

 

Posted

I'd prefer that too, but if a company's story, business, and management are all perfect, it is far less likely to be bought at a bargain price....

 

Obviously I understand your point, and completely agree that its a huge red flag, but it is worth looking at the board that PGNT is proposing on their slate for SED:

 

Jack H. Jacobs – Mr. Jacobs is an NBC military analyst and holds the McDermott Chair of Politics at West Point. He was among the most highly decorated soldiers in the Vietnam War, earning three Bronze Stars, two Silver Stars and the Medal of Honor. Mr. Jacobs serves on the Board of Directors of Paragon. If Paragon’s slate is elected at the annual meeting, Paragon currently anticipates that Mr. Jacobs will serve as the new Chairman of the Board of SED.

 

Dennis L. Chandler – Mr. Chandler is currently an independent advisor to private equity firms for acquiring and turning-around underperforming businesses. Mr. Chandler serves as a director of FiberMark, a fully integrated manufacturer and global distributor of fiber-based covering solutions. Mr. Chandler was previously the Chief Operating Officer of ACCO Brands, a multi-billion dollar manufacturer and distributor of consumer and commercial office products.

 

Hesham M. Gad – Mr. Gad is the Chairman of the Board of Directors of Paragon. He is also the Managing Partner of Gad Capital Management LLC, which is the General Partner of Gad Partners Fund LP. Gad Partners Fund LP is a value-focused investment partnership and the largest shareholder of Paragon.

 

Samuel S. Weiser – Mr. Weiser is the Chief Executive Officer of Premier Exhibitions, Inc., an international provider of museum quality exhibitions. Mr. Weiser serves on the Board of Directors of Paragon and is the Chairman of its Audit Committee. He was a managing director for the Hedge Fund Consulting Group at Citigroup and is a former partner of Ernst and Young. Mr. Weiser is a licensed CPA.

 

Klaus-Dieter Wurm – Mr. Wurm is an Executive Vice President of Schaefer Systems International, the largest provider of logistics systems and supply chain solutions in the world. Previously, Mr. Wurm was Vice President, Sales & Marketing for Krones, Inc., the world’s largest manufacturer of packing machinery and engineering services to the food and beverage, pharmaceutical, chemical and automotive industries.

 

Heres the deal:

 

The companies story is marketing. The target market is young value investors that are looking for the next buffett.  Gad's track record in capital allocation is below average look at his returns. Young buffett had an amazing track record. Track record matters and results matter.  Also add questionable ethics in stealing money. Learn from buffet be your own version of buffett. Start a business invest the excess cash in whatever you want property/investments. Use buffetts philosophy to build your own mini brk. What did Gandhi say " be the change in the world". I would say " access your own inner buffett don't look for it you already have it in you". Sorry for the rant. My pet pleeve are young investors marketing themselves as the next coming using IV and buffett terminology.

 

+1!  It's not that you can't or won't make money from these guys...but it's what you can live with.  Part of me is intrigued by their abilities, brashness and ego, but at the same time, do you really want to partner with them?  It's a personal decision. 

 

I can say without a doubt, that I've made far more money for my partners since selling our stake in Steak'n Shake, then they would have made if we held on to the stock.  So, you can still make money without compromises to your ethics!  Cheers!

  • 2 weeks later...

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