Tuesday, October 25, 2011

When Syms Loses, It's Shareholders Win...

Below, we find out that Syms was denied an appeal that it requested in regard to a previous ruling over turning it's books over to it's largest independent shareholder. It seems that Andrew Sole at Esopus Creek has this crazy notion that where he needs to make sure that there is nothing funny going on with the company and that it is being run for all shareholders... After all, it isn't like Syms has historically been un friendly to shareholders.

Oh, wait a minute, Syms actually does have one of the worst reputations that I can imagine when it comes to the equal and fair treatment of shareholders (it's right up their with Itex and Northeastern Auto Holdings)... At the annual meeting, they took my cell phone from me!

Syms Denial Of Stay

Frankly, as a shareholder of the company, I am getting quite sick of Syms' management ignoring my, other shareholders, and the legal systems wishes for them to turn over their books. It is not only a waste of company resources (it isn't like they are drowning in cash or anything), but is also a waste of their efforts, as they should be focusing on unlocking value for shareholders. If the company would have pursued any strategy as intently as they have in not turning over their books, they might not of needed to sell off some valuable real estate and close 6 stores.

While I am guessing that Syms will continue doing all that they can to delay this decision, I will count this as another win for minority shareholders and corporate transparency.

Disclosure: Long 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.

1 comment:

Anonymous said...

Thoughts on bankruptcy?