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gnulaw (54.30)

Geeknet (LNUX) Insiders Hold More than 25% of Outstanding Shares After Acquiring Another 1 Million+ Shares Today. Amazon Takeover? Going Private? Or What?

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November 13, 2009 – Comments (27) | RELATED TICKERS: AMZN , BBY , GKNT


Marlin Sams Fund, L.P. acquires an additional 1,197,285 shares Nov 11 - today, Nov 13th, acquiring 1,051,166 today at $1.16. Total shares beneficially owned by William Sams, Marlin Sams, Suzanne Present, Gladwyne, et al is now at 15,262,285 or appx 25.5%.

Share acquisitions detailed at here.

...so, what is going on? I have considerable respect for Suzanne Present's* Investment Banking background at Lazard Frere and hope she is about to make something happen. Keep an eye on Michael Sileck also. He would be a superior candidate to become, at least, President and COO of Geeknet. Geeknet should be positioned for a bidding war between Amazon.com, IAC/InterActiveCorp, BestBuy, and IBM. Amazon.com would be an absolutely perfect fit, and significantly, absorbing SourceForge.net in the acquisition would also be a brilliant move for Amazon as 1) they will not be perceived as a threat to Open Source, as say, Microsoft would if they were to acquire Geeknet and 2) could make huge sense for Amazon given how Open Source has played a key part in the Amazon story.

IACI would make sense and Sileck comes from there. Best Buy would be the 2nd best choice to acquire ThinkGeek, but my strategy would have been to have ThinkGeek perform an IPO, raise $100 million and then put them in play after bringing in a key exec from Best Buy or Amazon. 

In Conclusion

Given the trading patterns in the past week through today and the fact Marlin Sams et al now controls  greater than 25% of Geeknet common something is up...and should be. The other compelling question is: Why hasn't Scott Kauffman ever attended an investor conference nor analyst meeting, simply as the most basic and necessary process to increase visibility and shareholder value? This simply is not normal and represents a major red flag. Conversely, the fact he hasn't says more. This information should additionally be the focus of any analysis of Geeknet. Is Geeknet about to go private? Is driving Geeknet shareholders away as investors his/SAMS et al's plan? "...The SEC allows a company with fewer than 300 shareholders to de-register its securities and become a private company. This process is typically done through a merger or tender offer (TO) that reduces the number of shareholders to one.." - Source: SmartPros.

 

 

* Suzanne M. Present Principal Gladwyne Partners, LLC

Suzanne M. Present has served on Geeknet's Board of Directors since September 2008. Ms. Present is a Principal of Gladwyne Partners, LLC, a private partnership fund manager. Prior to co-founding Gladwyne in 1998, Ms. Present was a Vice President in the mergers and acquisitions department of Lazard Frères & Co. Ms. Present joined Lazard FrÃres & Co. in 1984 as a securities analyst. Source: ZoomInfo

 

27 Comments – Post Your Own

#1) On November 13, 2009 at 7:26 PM, gnulaw (54.30) wrote:

[CORRECTION]

 

>> I have considerable respect for Suzanne Present's* Investment Banking background at Lazard Freres

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#2) On November 14, 2009 at 11:37 AM, gnulaw (54.30) wrote:

>>Is Geeknet about to go private? Is driving Geeknet shareholders away as investors his/SAMS et al's plan? "... 

The problem with such a strategy is that it is not legal pursuant to Section 406 of the Sarbanes-Oxley Act of 2002, SEC Rule 10b-5, etc... Scott Kauffman, CEO and the Geeknet Board of Directors would be proximate cause for engineering Geeknet's (LNUX) shareholder value destruction viz-a-viz 

SourceForge (LNUX) Scott Kauffman's 5-step Shareholder* Value Creation Process Model

Source: Motley Fool Nov 3 2009 http://caps.fool.com/Blogs/ViewPost.aspx?bpid=287432&t=01005232244381733972

 

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#3) On November 14, 2009 at 11:42 AM, gnulaw (54.30) wrote:

>> Scott Kauffman, CEO and the Geeknet Board of Directors would be proximate cause for engineering Geeknet's (LNUX) shareholder value destruction 

 

and conversely their failure to create shareholder value. 

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#4) On November 14, 2009 at 12:10 PM, gnulaw (54.30) wrote:

[AMENDMENT]

 

 

>> Scott Kauffman, CEO and the Geeknet Board of Directors would be proximate cause for [their alleged stock fraud, malfeasance and criminally gross negligent] engineering Geeknet's (LNUX) shareholder value destruction 

 

and conversely their [alleged stock fraud, malfeasance and criminally gross negligent] failure to create shareholder value. 

 

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#5) On November 19, 2009 at 11:24 AM, gnulaw (54.30) wrote:

Director Sileck acquires another 7,000 shares, files SEC FORM 4 November 18th source: http://www.topix.com/com/sourceforge/2009/11/breaking-news-geeknet-lnux-director-michael-sileck-acquires-more-shares-november-11th

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#6) On November 20, 2009 at 8:00 PM, gnulaw (54.30) wrote:

Director Sileck acquires another 6,000 shares, files SEC FORM 4 November 20th source: http://www.topix.com/com/sourceforge/2009/11/breaking-news-geeknet-lnux-director-michael-sileck-acquires-more-shares-november-11th

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#7) On November 20, 2009 at 8:20 PM, gnulaw (54.30) wrote:

Geeknet's latest press release is reporting that their unique visitor count is at 42 million. In June SourceForge reported 35 million unique visitors.(1)

This is, significantly, a 20% increase (or seven (7) million) unique visitors in appx. 4 months. The following is from ThinkGeek Labs Nov 19th Tauntuan press release:

"...Geeknet, Inc. (NASDAQ: LNUX - News), is the online network for the global geek community. Our sites include SourceForge, Slashdot, ThinkGeek, Ohloh and freshmeat. We serve an audience of more than 40 million users* each month and provide the tech obsessed with content, culture, connections, commerce, and all the things that geeks crave. Want to learn more? Check out geek.net.

(*October 2009 Unique Visitors 42M. Source: Google Analytics and Omniture)... "

Source:http://finance.yahoo.com/news/ThinkGeek-Releases-New-bw-596058890.html?x=0&.v=1

 

(1) http://geek.net/press/sourceforge-reports-second-quarter-2009-financial-results/

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#8) On November 24, 2009 at 3:59 PM, gnulaw (54.30) wrote:

Geeknet (LNUX) Director beneficially acquires another 39,126 shares from 11/19 through 11/23. Gladwyne Marlin Genpar files SEC FORM 4 yesterday, 11/23. Source: http://secfilings.com/searchresults.aspx?formtypeid=&industryid=&ticker=LNUX

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#9) On November 24, 2009 at 6:19 PM, gnulaw (54.30) wrote:

LNUX Director Sileck acquires 3,000 more LNUX common 11/23 taking his total ownership to 69,000 shares...files SEC FORM 4 on 11/24. Source: http://secfilings.com/s earchresults.aspx?formtypeid= &industryid=&ticker=LNUX

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#10) On November 25, 2009 at 7:58 AM, gnulaw (54.30) wrote:

LNUX Director Sileck acquires another 3,000 more LNUX common 11/24 taking his total ownership to 72,000 shares...files SEC FORM 4 on 11/24 source:http://secfilings.com/s earchresults.aspx?formtypeid= &industryid=&ticker=LN UX

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#11) On November 25, 2009 at 8:11 AM, gnulaw (54.30) wrote:

>>IACI would make sense and Sileck comes from there. Best Buy would be the 2nd best choice to acquire ThinkGeek, but my strategy would have been to have ThinkGeek perform an IPO, raise $100 million and then put them in play after bringing in a key exec from Best Buy or Amazon. 

 

Comment: The timing of a [proposed by this author] ThinkGeek (NASDAQ:G33K)  IPO should be contemporaneous with the announcement of Geeknet (LNUX) Q4 numbers presuming ThinkGeek continues to increase revenues and possibly with a significant revenue surprise especially in re: the Tauntaun and Guitar T-Shirt...by early February 2010. This should be in Geeknet's strategy arsenal in maximizing LNUX shareholder value. This would mean that Kauffman should already be working with their lead Investment Banker for said IPO if he is the right CEO for Geeknet (LNUX) and conversely the reason he should be replaced for cause if this is not being implemented as I write.

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#12) On November 25, 2009 at 8:25 AM, gnulaw (54.30) wrote:

>>Keep an eye on Michael Sileck also. He would be a superior candidate to become, at least, President and COO of Geeknet.

 

Note: I said President and COO, not Chairman and CEO. Big difference. Day to day operations and inventory/cost accounting in re: ThinkGeek's margins is a gaping hole at Geeknet and why their gross margins are tanking. ThinkGeek invented products e.g. Tauntaun and Electric Guitar T-Shirt should drive these margins back up. Sileck would accordingly be perfect and timely as President and COO of Geeknet (LNUX). He knows the drill and the players.

 

Michael Sileck: http://geek.net/index.php/about/board-of-directors/michael-sileck/ 

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#13) On November 25, 2009 at 8:26 AM, gnulaw (54.30) wrote:

>>Keep an eye on Michael Sileck also. He would be a superior candidate to become, at least, President and COO of Geeknet.

 

Note: I said President and COO, not Chairman and CEO. Big difference. Day to day operations and inventory/cost accounting in re: ThinkGeek's margins is a gaping hole at Geeknet and why their gross margins are tanking. ThinkGeek invented products e.g. Tauntaun and Electric Guitar T-Shirt should drive these margins back up. Sileck would accordingly be perfect and timely as President and COO of Geeknet (LNUX). He knows the drill and the players.

 

Michael Sileck: http://geek.net/index.php/about/board-of-directors/michael-sileck/ 

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#14) On November 26, 2009 at 9:17 AM, gnulaw (54.30) wrote:

Geeknet (LNUX) Director Suzanne Present* beneficially acquires another 100,221 shares from 11/24 through 11/25. Gladwyne Marlin Genpar files SEC FORM 4 yesterday, 11/25. Source: http://secfilings.com/searchresults.aspx?formtypeid=&industryid=&ticker=LNUX

 

* Signatures 

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams Fund, L.P. 11/25/2009** Signature of Reporting PersonDate

 

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams GenPar, LLC 11/25/2009** Signature of Reporting PersonDate

 

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Gladwyne Marlin GenPar, LLC 11/25/2009

 

 

Reference: http://caps.fool.com/Blogs/ViewPost.aspx?bpid=300208&t=01005232244381733972 

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#15) On November 26, 2009 at 9:32 AM, gnulaw (54.30) wrote:

Additional Reference to this original post:

 

Follow the Money:Gladwyne/Sams (Present/Sileck) SourceForge (LNUX) Control Exceeds 22%* (shares) 28% (Board)

(Motley Fool - August 23, 2009) 

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=247688&t=01005232244381733972 

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#16) On November 26, 2009 at 9:33 AM, gnulaw (54.30) wrote:

Additional Reference to this original post:

 

Follow the Money:Gladwyne/Sams (Present/Sileck) SourceForge (LNUX) Control Exceeds 22%* (shares) 28% (Board)

(Motley Fool - August 23, 2009) 

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=247688&t=01005232244381733972 

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#17) On November 26, 2009 at 9:33 AM, gnulaw (54.30) wrote:

Additional Reference to this original post:

 

Follow the Money:Gladwyne/Sams (Present/Sileck) SourceForge (LNUX) Control Exceeds 22%* (shares) 28% (Board)

(Motley Fool - August 23, 2009) 

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=247688&t=01005232244381733972 

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#18) On November 26, 2009 at 9:33 AM, gnulaw (54.30) wrote:

Additional Reference to this original post:

 

Follow the Money:Gladwyne/Sams (Present/Sileck) SourceForge (LNUX) Control Exceeds 22%* (shares) 28% (Board)

(Motley Fool - August 23, 2009) 

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=247688&t=01005232244381733972 

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#19) On November 27, 2009 at 7:16 PM, gnulaw (54.30) wrote:

LNUX Director Sileck acquires another 3,000 more LNUX common 11/25 - 11/27 taking his total ownership to 75,000 shares...files SEC FORM 4 on 11/27.

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#20) On December 01, 2009 at 7:40 PM, gnulaw (54.30) wrote:

Geeknet (LNUX) Director Suzanne Present* beneficially acquires another 21,262 shares 11/27. Gladwyne Marlin Genpar files SEC FORM 4 today, 12/1. Source: http://secfilings.com/searchresults.aspx?formtypeid=&industryid=&ticker=LNUX


*Signatures 
/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams Fund, L.P.12/1/2009** Signature of Reporting PersonDate

 

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams GenPar, LLC12/1/2009** Signature of Reporting PersonDate

 

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Gladwyne Marlin GenPar, LLC12/1/2009** Signature of Reporting PersonDate

 

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#21) On December 08, 2009 at 10:14 PM, gnulaw (54.30) wrote:

Geeknet (LNUX) Director Suzanne Present beneficially acquires another 231,257 shares 12/04. Gladwyne Marlin Genpar files SEC FORM 4 today, 12/08.

 

Signatures

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams Fund,

L.P. 12/8/2009

** Signature of Reporting Person Date

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams GenPar,

LLC 12/8/2009

** Signature of Reporting Person Date

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Gladwyne Marlin

GenPar, LLC 12/8/2009

** Signature of Reporting Person Date

 

 

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#22) On December 14, 2009 at 5:34 PM, gnulaw (54.30) wrote:

Geeknet (LNUX) Director Suzanne Present beneficially acquires another 500,000 shares 12/10 @ $1.25. Gladwyne Marlin Genpar files SEC FORM 4 today, 12/10.

Signatures 
/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams Fund, L.P.12/14/2009** Signature of Reporting PersonDate

 

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Marlin Sams GenPar, LLC12/14/2009** Signature of Reporting PersonDate

 

/s/ Suzanne Present, a managing member of Gladwyne Marlin GenPar, LLC, on behalf of Gladwyne Marlin GenPar, LLC12/14/2009** Signature of Reporting PersonDate

 

__________________________

 

 

Marlin Sams Fund, L.P. files SEC Schedule 13D, beneficial ownership now ~ 26.6%. 

 

 

CUSIP 83616W101

Page 16 of 17 Pages

SCHEDULE 13D

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated:  December 14, 2009

MARLIN SAMS FUND, L.P.

By:

Marlin Sams Genpar, LLC 

Its general partner

By:

Gladwyne Marlin GenPar, LLC 

A managing member

By: 

/s/ Suzanne Present

Name:  Suzanne Present 

Title:    A Managing Member

  

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#23) On December 15, 2009 at 7:40 PM, gnulaw (54.30) wrote:

[CORRECTION]>>Geeknet (LNUX) Director Suzanne Present beneficially acquires another 500,000 shares 12/10 @ $1.25. Gladwyne Marlin Genpar files SEC FORM 4 today, 12/10.

 

Geeknet (LNUX) Director Suzanne Present beneficially acquires another 500,000 shares 12/10 @ $1.25. Gladwyne Marlin Genpar files SEC FORM 4 today, 12/[14] 

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#24) On February 09, 2010 at 12:26 PM, BlakeWellington (< 20) wrote:

ChaosUnplugged,

I've jumped into this thread admittedly not knowing much about the history here.  I've pored over what is known and has been discussed, but I don't see the end game for the insiders.  In attempting to determine if I should buy this stock, here's a list of what I do see:

Negatives

Geeknet has been poorly managed (some may call that an understatement).  Their stock price has plummeted to close to an all-time low.

They're losing money QoQ and eating into their cash.

The release of a sleeping bag is a significant event to their investors?  Really?  How many could they possibly sell?

Positives

Insiders are buying up all the stock they can scrounge together.  They clearly believe something is about to break in their favor.  What do they know?

They have lots of cash (for now).

They have no debt.

Their unique visitors is increasing.

Summary

So, I'm intrigued by this stock, but I think it's a huge gamble.  I love to jump in on small companies who get swallowed whole by the big boys.  A bidding war between Amazon, Best Buy, and IBM sounds delicious. Do you have any more details on why you think that may happen?

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#25) On February 18, 2010 at 5:10 PM, gnulaw (54.30) wrote:

Marlin Sams acquires another 14,400 shares for $1.38/sh on 2/16. Filed SEC FORM 4 today http://secfilings.com/searchresultswide.aspx?link=2&filingid=7065637.

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#26) On February 26, 2010 at 5:53 PM, gnulaw (54.30) wrote:

Suzanne Present aka Marlins Sams aka Gladwyne Marlin Genpar, LLC acquired an additional 85,600 shares 2/24, filed SEC FORM 4 2/26.

Source: http://secfilings.com/searchresults.aspx?formtypeid=&industryid=&ticker=LNUX

 

 

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#27) On March 01, 2011 at 6:55 PM, gnulaw (54.30) wrote:

GKNT Largest Shareholder Dumps 30,000 shares 2/25/2011 - 3/1/2011.

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