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.
