tag:blogger.com,1999:blog-2149523431587168680.post3732505393378410334..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: Titon HoldingsNate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2149523431587168680.post-63052943117296170372011-06-17T21:56:26.310-04:002011-06-17T21:56:26.310-04:00Valuhunteruk,
Thanks for the comment, I'...Valuhunteruk,<br /><br /> Thanks for the comment, I'm not very familiar with the dual class structure but I'm guessing it's a class with super voting privileges and a second class with little to no voting rights. Maybe it's a cultural thing but I would much prefer straight shares, if someone wants to take over the company at a premium and help realize the value I'm happy to oblige.<br /><br /> As for the capital structure I could agree to a point, my issue is if they took on debt I'm not sure if they have enough of an operating buffer to support the interest payments. As seen in the last period results dropped off, with only £9k in operating income they would have probably been in default of their debt, or had to tap into reserves to pay the interest. I'm not sure how many banks will loan money to an entity that has the possibility of a real liquidity crisis scenario.<br /><br /> I would personally love to see a management shakeup, unfortunately with companies like this it doesn't usually happen. And Titon is a bit too small for an activist to come in, but the company is ripe for a shakeup.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-51371484692843405552011-06-17T08:37:18.073-04:002011-06-17T08:37:18.073-04:00I've been thinking about TON again recently. T...I've been thinking about TON again recently. To me, TON is one of a number of UK-listed companies with absolutely terrible capital structures (MOSB is another one that stumbles to mind). What is more puzzling is that it doesn't have the dual-class share structure which seems to be used by other similar companies to protect them from outsiders. <br /><br />Either way, whilst the company does have operational problems, I think they are more to do with bad management than anything else and can be solved. <br /><br />Since 1992, there have only been two years of losses. Operations are valued net of cash around £2.7m. I haven't gone through the maths fully but even a small amount of debt (maybe just an overdraft facility)would see the value of operations double at least. I just can't see how it makes sense to keep all that cash. So its a real shame as there is a massive amount of value to be unlocked here.Valuhunterukhttp://www.valuhunteruk.comnoreply@blogger.com