National Holdings Corporation (NHLD)

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NHLD's last Board of Directors meeting was combative.

There is no love lost between Fagenson (Chairman and CEO) and NHLD’s Investor Directors (Abbe and Silverman). Fagenson does not believe Abbe and Silverman are qualified to criticize his decisions and will block any attempt by them to influence NHLD's Board of Directors. Abbe's and Silverman's repeated attempts to have an effect on NHLD's Board decisions have been weakened by Fagenson’s backroom discussions with board members.

Abbe and Silverman have become more confrontational as Fagenson has failed maximize value for stockholders over the last 18 months. The frustration is clear from both sides, but there has been some belated movement to maximize value for NHLD stockholders as a standalone entity. NHLD’s Board of Directors authorized the repurchase of up to $2 million of NHLD’s common stock, and the Board will probably institute a dividend payout as NHLD becomes more cash positive.

Abbe and Silverman also raised their concerns regarding NHLD’s lack of concrete plans to seize any M&A opportunity as Fagenson has continued to drag his feet. However, even on this front there may be some movement. Fagenson’s public admission that he would be pleased to see a premium bidder come in to maximize shareholder value is just talk at this point, but Abbe and Silverman can use this statement to move the rest of the Board of Directors in the right direction.

The Annual Meeting of Stockholders on Tuesday, August 18, 2015, should be a cordial event.