Author Topic: Steel Parners Holdings  (Read 1162 times)

Fred93

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Steel Parners Holdings
« on: December 02, 2019, 03:38:00 PM »
SPLP

An unusual company.  A small conglomerate of various industrial materials mfg companies and Web Bank.

Web Bank is the bank that issues loans for the various small lending companies like Prosper and LendingClub.  You need the bank in the middle for some obscure old regulatory reason.  I always figured that was a good business, 'cause they're about the only folks doin' this.

Someone else here followed SPLP  I seem to recall.

One funny thing about the business is that about half the stock is owned by insiders, and they don't seem to run the thing to make a profit.  Earnings are a "sometimes" thing, bouncing around in a seemingly random fashion.  I believe that this is just a nontraditional motivation at the top.  They aren't driven by the usual wall street approach of drive earnings to make shareholders happy.

Meanwhile, they continue to ramp sales, and buy back shares every year.

So this looks like a possible good thing, but the darn stock price keeps goin' down.  I wonder if there's stuff I don't understand.

I've tried reading the 10k, but it is complex, due to the mix of businesses, and constant background of acquisition things going on, and while I'm pretty good at reading a straightforward 10K, I'm no accountant, so I don't believe I really understand all I see there.

Anyone have thoughts on SPLP?



rawraw

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Re: Steel Parners Holdings
« Reply #1 on: December 02, 2019, 04:53:32 PM »
Based on your description, sounds like a hard one to invest in.  Sounds like a Japanese company

nonattender

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Re: Steel Parners Holdings
« Reply #2 on: December 19, 2019, 03:57:49 AM »
Anyone have thoughts on SPLP?

Yup, largely of the "this stock price should be higher" variety.
A little nonsense now and then is relished by the wisest men.

Fred93

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Re: Steel Parners Holdings
« Reply #3 on: December 19, 2019, 04:26:27 AM »
Anyone have thoughts on SPLP?

Yup, largely of the "this stock price should be higher" variety.

Dear nonattender ... good to hear your voice.  Happy to see that all the oldtimers are not gone.

The confusing thing about this stock is that if we value it based on how we would value a company run by normal people with normal motivations, then it seems undervalued.  (plus or minus my ability to understand the 10k with the complexities of multiple businesses, etc)

Normally motivated management would operate the thing to show a profit.  Looks to me like management is motivated differently, and I realize that I don't know when they might change their style.  The market won't drive the stock up until there are either earnings or huge sales growth (ala Amazon) or huge hype and scandal (ala Tesla), and none of those things may occur in our lifetime.  Most people look at P/E or momentum or fads.

I am thinking maybe management will change their tune at some point so that their stock holdings go up and they can sell some, but when that point might occur is beyond me.  For all I know they plan to let their heirs make that change.  (Hey, low valuation makes low estate tax.)

It does seem safe at least.  But the common stock could continue its downtrend.  Its kind of in an uncharted territory, where no simple price guidelines apply.

On the other hand, if it goes low enough, someone will take it over, and run it like normal folk.

On the other hand, who the hell would buy a company this complex?  Not a company looking to acquire a specific technology.  Who buys out a tiny conglomerate?  Would have to be some hedge fund type guy.  Those folks are dangerous managers (reference Sears).

On the other hand, nonattender likes it.

I own some of the preferred stock.  This was a judgement about yield vs seeming relative safety.  I know small companies pay high yields in general, especially one showing erratic earnings.  Even if disaster occurred, and the thing went into bankruptcy, I figure some of the businesses are worth more than enough to pay off the preferred stock.

The common stock still leaves me confused.


nonattender

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Re: Steel Parners Holdings
« Reply #4 on: December 19, 2019, 05:28:30 AM »
i'd like them to spin webbank, especially since those new "alt" bank charters got killed and webbank (and about 10 others) own the mkt - alternately, someone should buy it off them... i'm sure they're willing to hear offers.  for reference, cross river, which is a little bank in NJ that does similar things, has gotten major VC interest over the the years and is valued at like ~5x current mkt cap of the entirety of splp.

i note you found the preferreds;  that's the "safe" play.  but, uh, they aren't printing any more of those licences to print money nationally, so, that's... what... uh... piqured my interest in splp, proper.
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rawraw

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Re: Steel Parners Holdings
« Reply #5 on: December 21, 2019, 11:48:52 AM »
Utah industrial charters are still granted as far as I know