Happy $2000

tpltblogger11 Comments

Just a reminder that a 3 for 1 split (even if it didn’t provide for extra shares for shananigans) is pointless.

Also, if this team can’t figure out a good split number to use to hide a share authorization, can you really trust them to spend that authorization?

Amateur hour.

Don’t let yourself get diluted.

11 thoughts on “Happy $2000”

  1. Why is it pointless? There’s value in a split even if it is just to narrow the spread on bid and offer…which is often really wide.

    Like

      • I do understand your argument that the proposal is a trap. You make a sound argument about the board’s true intent. However, the split needs to happen—though your right that the proposals language needs to be narrow and specific that it is only for the purposes of a split.

        Liked by 1 person

  2. It’s def not pointless, it’s a market responsive thing to do. Agree that it’s not mathematically significant but packaging matters.

    Like

      • hear you on dilution, which a split alone does not create. I don’t think there are many people more astute on market structure, capital allocation, or TPL generally, than Murray Stahl, and I trust that he’s looking out for himself and all shareholders here. It seems hard to hold the position long term that this is 1) a good investment and 2) mgmt/board are hellbent on destroying value…it seems if you hold those disparate views you should sell. Wasn’t it Buffet that said he’d rather have bad mgmt in a great business than great mgmt in a bad business? Maybe that’s here and now at TPL…though I’d argue we now have a much better advocate and voice of reason in boardroom than any time in recent past. I’ve only known about TPL since 2012 and bought after reading Murray’s research.
        Respectfully (as long time reader and TPLT net promoter), attacking what’s really a simple corporate action feels a little like yelling the sky is falling when it is not…stock just did hit an all time high, and appears well positioned for what’s ahead.

        Like

  3. I agree with TPL blogger. A 3:1 split is meaningless, its still an expensive stock if that split happens.. And frankly there is nothing wrong with having an expensive stock. Many brokerage firms allow fractional purchase if you want .25 of a share.

    If you are going to split, even 10:1 you still have a $200 a share stock.

    I worry about the potential games by management on this proposal and plan to oppose. Its not a straight up deal.

    From a historical standpoint, circa 2006 there was a stock split of TPL, at 5 :1.
    Not sure it accomplished a thing, would rather see the current price without that split, which would now be just above 10k/share.

    Like

    • Yes, I think for many of us we have seen unethical behaviors by members of this board. Cancelling elections, cookie cutout candidates, McFibbins. We are rightfully suspicious of every proposal that is not spelled out and concrete. Barry, Norris and likely Macaroon cookies are in this for themselves. They have proved that time and time again. I am okay with no changes to the operations until those 3 amigos have been ridden off into the the Texas sunset. Then I might place more faith in the boards proposals. I am with the TPLTblogger on this one. (tho if MS is ‘for’ we are likely doomed).

      Liked by 1 person

  4. For any of you strongly advocating for a split, please outline why this would be a prudent move — especially if the only way management says this can be done is to issue more shares. That is such a slippery slope we would be consenting too. From my view, it was a big negative that repurchased shares are no longer being retired (instead, kept in treasury), and opening the door to actually issuing additional shares does not appeal to me.

    As for a split reducing the wide Bid/Ask spreads, I actually prefer that volatility. By studying the price moves over a period of time, it becomes possible to place Limit orders that have allowed me to sell some shares high and buy back in when the price adjusts lower. It has been a very profitable strategy for my portfolio.

    I appreciate everyone’s views and civil debate on this board. Thanks!

    Liked by 1 person

Comments are closed.