The Cost of Poor Governance

tpltblogger20 Comments

Is this what happens when you rugpull investors on a vote and sue your largest shareholder? The highs were put in right before the annual meeting date and it’s been a downward spiral since.

20 thoughts on “The Cost of Poor Governance”

  1. You have likely correctly answered your own question. The lawsuit is not in the shareholders’ interest and is an absurd waste of money in attorneys fees imho. The only good news is the land and resources are not changing and the litigation should be over soon.

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  2. Someone on the Yahoo Board mentioned Maurice Meyer, the prior Trustee. Boy, those were the days when honesty, integrity and trustworthiness were attributes that occurred in spades. Those were the days, We now have the Sam Bankman-Fried clown show running the company

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    • Honest question for the group as I have followed along here for many years: what are shareholder options to remove bad management and bad board members that don’t align with owner interests? (Options specific to this situation and likelihood of those options being able to go through). I am as upset as anyone with all the shenanigans but am wanting to move to the next step and actually doing something about it

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      • Shareholder proposals and an alternate slate director nomination. You can also write to some of the large proxy vote advisors (ISS, Glass Lewis, etc) to make them aware of the poor governance and the board tolerance thereof.

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        • Step 1 would be for everyone who has their stock in some sort of advisory account make sure the ‘advisor’ doesn’t have their shares inadvertently voting ‘for’ on item #4.

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  4. I was just wondering the same thing. It doesn’t give investors confidence, especially if you are now a hit target if you as an owner disagree with management. Time for new management and new board. They have been clowns and not very entertaining clowns.

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  5. One question that comes to mind, and I don’t have the answer. Are the lawyers on the board (or their firms) getting miney fro TPL to sue the lrgest shareholders.

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  7. I have managed money for 45 years and I cannot recall a board ever suing their largest shareholders. These guys have no skin in the game and are out to fleece shareholders.
    Our job is to educate the shareholder base so they understand what is going on. The sooner these guys are voted out the better. Just my view.

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  8. Having been a long time shareholder since the early 1970’s, I cannot begin to tell you what a disappoint the board has become. Changing the original charter and adding more shares will fundamentally alter the long time appeal that I’ve had for this company! A company formed out of bankruptcy that was to slowly dissolve itself; with each share becoming more valuable, was something to hold on to. Now? Who knows!

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  9. What is puzzling me is the cash on hand “Cash Balance of $447 Million” according to the November 22 Investor presentation and the Board is repurchasing shares to the tune of 350 million dollars funded from that cash. That seems to be acting in the shareholders interest. 350 million divided by 1900 equals more than 184 thousand shares [that can’t be reissued]? Without shareholder approval?

    From what I have read it appears the Stockholders agreement is terminated after the 2022 Annual Meeting. Is that correct?

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  10. It is my understanding that with the conversion from trust to corporation the repurchased shares are no longer “retired” but instead held in some type of “inventory” and can be used for other purposes in the future.

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  12. love these analysts that think they understand TPL , not that there is zero risk with the law suit but the judge hearing the case is the same judge that ruled in favor of Gabby. Patience pays off hear

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  14. The TPL specific from the article.

    “Texas Pacific Land Corp

    Murray Stahl (Trades, Portfolio) reduced their investment in NYSE:TPL by 56,311 shares. The trade had a 2.01% impact on the equity portfolio. During the quarter, the stock traded for an average price of $2385.38.

    On 02/09/2023, Texas Pacific Land Corp traded for a price of $1898.62 per share and a market cap of $13.79Bil. The stock has returned 80.83% over the past year.

    GuruFocus gives the company a financial strength rating of 10 out of 10 and a profitability rating of 10 out of 10.

    In terms of valuation, Texas Pacific Land Corp has a price-earnings ratio of 34.50, a price-book ratio of 20.30, a price-earnings-to-growth (PEG) ratio of 0.93, a EV-to-Ebitda ratio of 25.49 and a price-sales ratio of 20.90.

    The price-to-GF Value ratio is 0.92, earning the stock a GF Value rank of 6.”

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  15. Interesting article about Stahl reducing the HK holdings by ~56,000 shares. That outflow is likely contributing to the downward slide we’ve seen over the last three months. I’m sure the non-shareholder friendly management and board members would point to this development, smirk and say, “See, because of his massive holdings, Murray can create so much volatility in share price that he poses a risk to you everyday shareholders. We must dilute him!” What we’re missing of course is Murray’s astute commentary about the stock because of his restrictions in discussing it. For all we know, the sales are just simple profit taking by clients and he is as bullish on TPL as ever.

    We should look forward to him prevailing in the ridiculous lawsuit against him and the termination of the dreaded Stockholder Agreement so we once again get insight into his true views on the company.

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  17. Yes it does seem like hes still buying for his own account everyday along with HK’s accounts. The thing that puzzles me was the report that i pointed out before where it seems like HK is also selling at the same time. As it has been pointed out, perhaps its due to outflows, but working in this industry, I know for a fact that SEC would not allow for one firm to trade this actively in and out (known as washing out trades, as people are afraid that you might be artificially creating “liquidity” which mislead investors), and they have been filing this on a routine basis… which makes me believe that theres a valid reason for this.

    In HK’s 1Q22 commentary, Murray mentioned “And yours truly, meaning me— you can see my filings—I buy stock every day. So, I hope, as far as that goes, that’s a good answer.” But the reversing trades has occured before 1Q22, hence it means those selling trades arent his “view” towards the company. However, I am still confused and dont know what to make of this.

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