As a long time observer of Solitron Devices, I have constantly been interested in the company and it's common stock as it has been a perpetual net-net of sorts. As a shareholder/beneficial owner with a position that is slowly growing I have grown ever more concerned about the company's governance in recent months.
I personally have little concern that SODI is a fraud, as Nate at Oddball Stocks outlined. That said, the company's constant lack of an annual meeting really bothers me. Not only is it not in the spirit of Delaware law to not have such a meeting, but the company has not held an election of the (staggered) board in quite sometime. Again, this is definitely not in the spirit of the company's By-Laws or Articles of Incorporation.
Here, Valueprax illustrates his interactions with the company. I strongly suggest checking out his post, as it is somewhat similar to my interactions with the company's management. While I never contacted any members of the board (other than Saraf), I have had a roughly 20 minute phone conversation and several email conversations with Mr. Saraf. In my phone conversation, it was apparent that people had been calling (in what seemed to be a response to posts such as this one and this one at Oddball Stocks) asking him to liquidate the company. Obviously, this set a bad tone from the start, as I think I was immediately lumped into this group of people who want something that I don't.
As I pointed out on this blog, the idea of liquidating a great little company such as Solitron is utterly absurd and I would much prefer a combination of share repurchases at opportunistic prices and then dividends when shares are not available. Frankly, I think that the company is sitting on too much cash at the moment- as is evident from the fact that it not only survived, but prospered in one of the worst economic downturns in modern history! Furthermore, when the company is selling below what seems to be a reasonable liquidation value, there is no reason to not buy back shares like crazy!
Anyway, once I made sure that Mr. Saraf knew that I wasn't a proponent for liquidation, the conversation went a bit better, though, was still tense. It is obvious that he views this company as his baby- which, when a person builds something of this nature, is understandable. However, there are certain changes that need to be made as a matter of accountability to the shareholders, who are partners in the business- an annual meeting is an obvious one. This is for various reasons- legality being one and transparency to shareholders being another.
If anyone is interested in contacting me in regard to getting the company to get on the right track of having an annual meeting, I would love to chat: ragnarisapirate(at)gmail.com. HOWEVER... This is in no way a request to vote shares together or anything of that nature...
Disclosure/Disclaimer: I and accounts that I manage are long shares of SODI. I reserve the right to change my/our position(s) at any time. This is nothing more than my opinion. You should always do a ton of your own research before even contemplating anything that I say, do, write, or so much as think about.