Savvy Trades and Investments

[zenvesting]

FCCG: The company made it's first SEC filing in seven years to file a Form 3 to report the receipt of the 8 million shares of FAT:
https://www.otcmarkets.com/stock/FCCG/filings

I find that to be a somewhat positive development, although I don't think we can conclude this means they are coming out of the dark quite yet.

I still think FCCG is a good arbitrage play, with the CEO of both companies, Andy Wiederhorn, owning 38.2% of FCCG according to FAT's 1A filings.

It will be interetesting to see what FCCG does when they begin receiving FAT dividends. Will Andy prefer the tax advantages of qualified dividends by distributing them to FCCG shareholders, will he pay himself a heavily taxed salary from FCCG's funds, or will he allow FCCG to collect the dividends to recapitalize it for some other venture?

No, I have not averaged down, I made a small investment with my risk capital and will not add to it unless I see the situation materially de-risked and an opportunity to jump in before the valuation disparity is corrected appropriately.

FWIW, I spoke with Maj @ GEOInvesting yesterday and he said he remains long as well, is still waiting for a response to the information request he placed through the SOS of Maryland, and looking at opportunities to implore Andy to do the right thing for long suffering FCCG shareholders.