Lemelson Capital further increases short stake and reaffirms 100% downside risk in Ligand Pharmaceuticals (NASDAQ: LGND), ancillary applications for Promacta® and Kyprolis® not commercially viable, Duavee® sales remain immaterial
A PDF version of the report is available here.
Please read the full disclosures at the end of the report by clicking on the link below.
Disclosure: Lemelson Capital is short shares of (NASDAQ:LGND).
A PDF version of Lemelson Capital's full 25-page report is available here.
LCM also released its May 2014 results with a 22.26% (16.29% net) YTD showing against 4.97% for the benchmark S & P 500 Total return index, which includes dividends.
Activist Positions in World Wrestling Entertainment (WWE) and Kulicke and Soffa Industries (KLIC) Fuel Gains
Marlborough, MA, May 27, 2014—Lemelson Capital Management, LLC, a private investment management firm, today announced that The Amvona Fund, LP has again been ranked by Barron's as one of the world's top performing hedge funds for April 2014. It represents the third time in eight months that Barron's monthly performance rankings of global hedge funds has included The Amvona Fund among the world's top performers. This designation follows the magazine previously ranking the fund as the top performing hedge fund for July and October 2013.
Ongoing Losses, Operating Failures, Material Misstatements Warrant and Require Urgent Executive Management Changes or a Sale of the Company
On March 17th, 2014 Lemelson Capital published “The Short Case for World Wrestling Entertainment”. At the time the shares were trading at 30.37.
The report stated that fair value for the shares was between $8.25 and $11.88 per share.
As of today, less than 60 days later, the shares are trading at $11.33 (and as low as $10.50) per share – a decline of some 63-65%.
On April 22nd, 2014 Lemelson Capital was featured in USA Today for a second time in less than two weeks - crediting the firm with the 10% surge (~100 M in market cap) in share price of Kulicke and Soffa industries (NASDAQ: KLIC) and reiterating the firms March 17th, 2014 short call that resulted in a ~ 800 Million drop in market cap. of World Wrestling Entertainment (NYSE: WWE).
Southborough, MA, April 22, 2014—Lemelson Capital, LLC, a private investment management firm, today announced that it has taken a significant equity position in Kulicke & Soffa Industries (NASDAQ:KLIC), a global leader in the design and manufacture of semiconductor and LED assembly equipment.
Lemelson Capital’s acquisition reflects the firm’s view that shares of the company remain dramatically undervalued.
Lemelson Capital also announced today that it is urging K&S to initiate a share repurchase plan and has delivered the following letter to the company’s management team, board of directors and other stakeholders.
SOUTHBOROUGH, Mass., April 9, 2014 -- Lemelson Capital, LLC, a private investment management firm, today is reiterating its "sell" position on the common stock of World Wrestling Entertainment (NYSE: WWE).
This guidance follows Lemelson Capital's earlier March 17, 2014 sell position on the stock. Since then, WWE has experienced a substantial correction, falling 26.8 percent, from a $30.37 March 17, 2014 close to $22.21 yesterday.
Shares of World Wrestling Entertainment (WWE) fairly priced between $8.25 and $11.88.
On March 17th, 2014 Amvona published Lemelson Capital Managements investment thesis "The Short Case for World Wrestling Entertainment".
The shares have lost approximately 26% of their value in the 16 trading days since publication. On April 7th, 2014 ValueWalk published "Amvona Short Call Sends WWE Tumbling" stating:
The business World Wrestling Entertainment (WWE) is engaged in is sport or show (or maybe both) designed to manufacture emotions - to this end, the shows are replete with the kind of drama that apparently opens wallets.
If the production of emotions however is transferred to the investing public and elicits the same visceral response to the stock as it does to the company's events, then there ought to be significant reason for caution on the long side, for sound investment policy has nothing to do with emotions.
On January 5th, 2012 Amvona published the article American Greetings Corp. and the Triple “W”. The thesis was comprised of two primary components:
a) The value and impact of the stock repurchases the company had made and would be making.
b) An appraisal of the real value of the company’s tangible assets.
The following is the price performance one year later of the two purchase made in the shares at the time.
Preface: Given the large number of articles available online that outline virtually every conceivable method of analyzing the quantitative factors of AAPL, the following aims instead to approach the subject from the more subjective, human aspect.
“Pain and foolishness lead to great bliss and complete knowledge, for Eternal Wisdom created nothing under the sun in vain.”
- Kahlil Gibran
On November 29th, 2011 Amvona published the article “Why we’re still buying Skechers stock”. The article indicated that shares in the company had been purchased for investor accounts between $11.86 and $12.77 per share.
Here were a few of the reasons for the purchase outlined at the time: