We were about to report Nelson Obus and Joshua Landes’ most recent insider purchases and saw a Dealbook article detailing Nelson Obus’ illegal insider trading investigation and trial which he won. He spent $6 Million to defend himself against SEC’s weak charges and still tries to clear his name. Illegal insider trading isn’t easy to prove and the SEC couldn’t meet the burden. Nelson Obus also didn’t settle the case with the SEC. He could have done this without admitting or denying any wrongdoing. This tells us that he is really innocent.
Nelson Obus started Wynnefield Partners with Joshua Landes in 1992. Before that Obus worked at Lazard Freres & Co. for eight years. He has a B.A. degree from NYU and an M.A. and A.B.D. from Brandeis in Politics. Joshua Landes also worked at Lazard Freres between 1984 and 1991. He has a B.A. degree from Rutgers in Economics. Wynnefield has $280 Million in AUM. Here is how they describe their investment strategy:
“Wynnefield Capital, Inc. (WCI) is a value investor, specializing in U.S. small cap situations that have a company or industry specific catalyst(s). Surfacing of these catalysts unlocks existing, but previously unrecognized value for shareholders. WCI maintains an active investment philosophy. We are not involved in “Greenmail” situations, but focus on initiatives with management and outside directors to release value.
We seek out under-followed, unrecognized and undervalued companies that fit our parameters which include minimal balance sheet risk and potential for micro or macro change. WCI adds value by uncovering both long and short opportunities through in-depth original research. We are patient tax conscious investors and generally maintain portfolio positions for 24-36 months.”
Last Wednesday Wynnefield field a Form 4 with the SEC disclosing that they purchased 134 K shares of MAM Software Group at $1.75 per share. MAM Software has a market cap of only $20 Million, so it is clear that Wynnefield invests in under-followed and unrecognized companies. You need to decide yourself whether MAM Software is an undervalued stock with minimal balance sheet risk and has potential catalysts.