Stahl Speaks on FRMO Call

Okay, there’s a couple of questions on TPL. I’m going to read them, and then I’m going to answer them in generalized ways, because some of the news is actually out and some of it I just can’t say, but two questions, are you able to work with the present trustees a bit of TPL? Well, and then secondarily it’s related question, will the corporate conversion happen?

Well to the latter, you might have observed the SEC filing on TPL. I believe it was Wednesday. Yesterday, you can see, so you can read it for yourselves, but the committee recommended the conversion, and you can see what’s going on there.

And I think that document answers the first question, because I think, I hope you could read that in the document. I thought everybody was working very well together or at least it strikes me that’s what the document should say, because I think it reads very well, but I leave it to you to judge for yourself. Anyway, the information is out there. You can read it and that’s the way it is. Okay, next question?

OK.  I’ll take it.

6 thoughts on “Stahl Speaks on FRMO Call

  1. fingers crossed on this. It’s like waiting and waiting and waiting. Cautiously optimistic. Thanks for the heads up.


  2. To think MS is being coy is just ridiculous … he said NOTHING because he cannot say ANYTHING with regards to the conversion committee. MS is playing the LONG game here … he KNOWS that once a conversion happens – 6 to 18 months from now – how this plays out in the long-run. As the largest shareholder for decades, he will actively vote current management and the Trustee’s out and elect those who understand capital allocation. At some point in the future, TPL will turn into a massive capital allocation/capital return story to investors … I just don’t know when.

    This is Horizon’s first activist campaign in their 25+ year history. Do not underestimate the importance of what that means.

    For those who want more ‘info’ on how Horizon views TPL – you need not look and further then what they have published in their quarterly commentaries.

    We will know a lot more about the state of the business, how serious management is with capital allocation + what they will be doing with the massive cash on the balance-sheet at this point.

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  3. Fully agree, ValueMaven. TPL is a compounding machine. HK knows this, which helps explains their daily purchases. I find it interesting they have upped their daily purchases recently.

    The first HK report on TPL was in 1995, recommending purchase at $20 a share. The stock was split 5:1 in June 2007. I felt my purchase of 500 shares 3 years later at $33 (or $165 on the old unsplit stock) was destined to be an epic mistake of overpaying. Since then, have bought a several hundred more at prices that are truly dizzying in comparison, but I believe over time will still be cheap as full value is realized. It may take a few years. I’m happy to wait as the growth spring coils tighter, and the cash position piles up.

    The trustees are playing checkers, while HK is slowly, methodically, and cleverly playing many moves ahead in a complicated multi-year chess game. Real change is coming, and the push towards a corporation will unlock tremendous value. My big worry about years of litigation and trustee stalling has turned out to be unfounded.

    The short-sighted view is HK lost the trustee election battle, but the long view is they will get their way with a C-corp, and have the votes to influence who becomes directors, and with their large stake generate some stunning investment returns. Thats what real winning looks like!

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