7.1% Holder Seeks Meeting With the Board to Discuss Deployment of Proceeds From Pending Sale of Company Real Estate
Seeks to Have Board Look at Special Dividend, Self-Tender, Go-Private, or Sale of the Entire Company
LAPORTE, Ind., Nov. 26, 2012 (GLOBE NEWSWIRE) -- Today, Timothy Stabosz, a 7.1% owner of Scott's Liquid Gold (OTCBB:SLGD), and the largest unaffiliated holder of the company, announced the filing of a Form 13D amendment with the SEC. In the filing, Stabosz, who recently increased his position in the company from a previously disclosed 5.0%, indicates his full support of the pending transaction to sell certain company owned Denver real estate for $9.5 million, but also expresses concern about the potential use of the proceeds from said sale, considering the current CEO's dismal record of losing money for 14 out of the last 15 years. Mr. Stabosz's 13D filing can be accessed at the following web link:
In addition, Mr. Stabosz submitted a letter to the board of directors of the company, dated November 24, 2012. The letter can be accessed at the following link:
In the letter, Stabosz requests that the company meet in person with a handful of its largest shareholders, to discuss their opinion on the best disposition for the cash that will result from the closing of the pending real estate transaction. Stabosz also suggests a number of possibilities the company should consider for the cash, but most importantly, he insists that the company provide for those that want to "cash out" of their investment in Scott's Liquid Gold the means to do so.
Stabosz stated, "While I am gratified by, and fully supportive of, the announced transaction, I am very concerned about what our company's board may do with the pending cash influx. As such, and considering CEO Mark Goldstein's longstanding record of value destruction, it is important that the board of the company reach out to its outside shareholders, to determine what THEY want. It is my hope that by publishing my 13D filing and letter, the board will realize the importance of this mandate, and the need to seek to determine what its long suffering outside shareholder base wants."
Timothy Stabosz is a long time "deep value" investor, specializing in a Graham & Dodd style investment regimen, emphasizing traditional value criteria, such as low price/book, low price/sales, discount to historical trading prices and historical earnings, etc. Stabosz looks for opportunities in areas of the market he considers to be extremely inefficient, with an emphasis on underfollowed microcap, nanocap, and low-priced stocks. He invests for his own account.
CONTACT: Tim Stabosz at email@example.com, or 219-324-5087Source:Timothy J. Stabosz