[U] Sutter Hill Is Now Locking In, And Shifting Around, Some Of Its Mattersight Stock Losses.

Okay — UPDATING @ 2:32 PM CDT:

If I were a purely cynical speculator, I might argue that Sutter Hill limited partners Michael L. Speiser, Samuel J. Pullara, III, Stephan A. Dyckerhoff, Jeffery W. Bird, James N. White and of course Tench Coxe — the head honcho of Sutter Hill, and a Mattersight board member… worked out a deal at some point last week, wherein it looks like Mr. Coxe (as the driver of the bus) has agreed to make the remaining five limited partners listed above “whole” — at least back up to about $3.65 per share — for their most recent (until now, paper only) losses.

No way to prove it, but this could be a “prior to filing suit” sort of settlement, one that might otherwise sound in federal securities fraud, all handled quietly under the guise of a “ordinary” internal funds reorganization. I will await additional evidence — as I hear from other potential institutional investors seeking the same sort of a (partial) make-whole.

End, Update.

Y A W N….

A series of four or five late evening June 2, 2017 SEC Forms 4 tell us that the volume of late is mostly… artificial. It is generated by internal Sutter Hill transfers — as that major investor re-arranges its deck chairs, allocating an inflated transfer price for the shares (compared to the $2.60/share closing price on Friday), to one of its own internal vehicles. Dull. This allocates and fixes a capital loss in those shares, to one Sutter Hill affiliated pocket, while showing an inflated sale price, in one other pocket of Sutter-Hill affiliated vehicle(s). Mind numbing.

The footnotes to these SEC filed Forms 4 disclose this:

“…In connection with the Liquidation, SHV entered into an agreement with the Limited Partner to repurchase 203,543 Distributed Common Shares from the Limited Partner at a purchase price equal to the average of the mean between the closing bid and ask prices over the ninety (90)-day period ended March 31, 2017…”

That price is right around $3.65 — while today’s ACTUAL NASDAQ trading is in the $2.55 range, and was around $2.60, on Friday.

Whatever folks. Whatever. The company is still sucking wind, post the Craig Hallum confab.

7 thoughts on “[U] Sutter Hill Is Now Locking In, And Shifting Around, Some Of Its Mattersight Stock Losses.”

  1. Mutiny on the good ship Sutter Hill? Tench Coxe needs to be wary of being tossed in a dingy with 30 days provisions.

    1. Argh!

      “…These be PIRATE rules — Any that fall behind… get left… behind.

      They done what’s right by the code….

      [Offered in my worst Jack Sparrow voice!]

      Avast — thanks man!

      And now we wait — and watch — a bit!

      1. There’s the pirate code and there’s management code (of sound practices). In terms of the latter, MATR views them as only “guidelines”. Keep expenses in line with revenues? Shivver me timbers, matey! You’ll never catch our Captain doin’ that sort of thing! Look! There’s the white whale! Spend away!

  2. I would wonder about the timing on the discussion among the Sutter-Hill partners on this topic. Was this a guarantee that was discussed among them before participating in the most recent stock sale? If so, as chairman of MATR, should Coxe have disclosed this to the investing public, particularly the non-Sutter-Hill participants in the stock sale? I would think that making an investment with a floor guarantee is a different decision from making an investment without one. Knowledge of such a floor guarantee by an officer of the company for some “investors” might dissuade other investors completely.

    Discovery can be fun! Bring the kids!

    1. Just as $2.50 was last week’s line of defense, $2.40 seems to be this week’s stand. Will there be enough ammo?

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