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Opalesque Geneva: Ortelius Advisors, an activist hedge fund based in New York City, has this week delivered an open letter to stockholders of Trecora Resources, a petrochemicals company based in Texas. The investor claims that Trecora's results are disappointing and that the company refuses to consider Ortelius' proposals and director candidates. That is not true, replied the petrochemical company the next day. They have considered most of Trecora's proposals and found them to have no supporting plans. They are "rather aimed at providing Ortelius a special, substantial economic interest in Trecora, or control of Trecora, without Ortelius providing a premium to other shareholders."
Ortelius owns approximately 11.3% of the outstanding common stock of Trecora, making it the company's largest stockholder.
The investor believes that Trecora has significant upside potential based on its high-quality assets, the letter says. But the stock price has chronically underperformed its peers, relevant indices, and the market. These returns are a result of operational missteps, poor capital allocation decisions, and missed strategic opportunities.
Since its previous letter in February, Ortelius has tried to engage with Trecora's board with proposals to add several individuals with focused industry and capital markets experience to the board, and with a plan to improve...................... To view our full article Click here
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