Monday, October 10, 2011

ITEX Gets Sued.

The activist shareholder group (the Polonitza Group) has finally come out with a derivative lawsuit against ITEX. It's hard to say what will happen, but hopefully, the company will begin to allocate capital in a method that doesn't seem to entrench management, but rather, benefit all shareholders.

The time frame for this is pretty much undeterminable (as we have learned with Syms), but at least the ball is rolling. If recent history continues to play out, this story will be great fun to watch unfold.

As an interesting side note, this previous article that I did was quoted in the suit.

Disclosure: No position in Itex, but I do own shares of Syms. This is not advice of any kind. Always do a ton of your own research in regard to anything that I say, do, write, or so much as even think about.

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