The Zanett Group has increased its stake in MATH to 6.58% according to its most recent Schedule 13D amendment.
We’ve been following MATH since December last year when it was trading at $0.68. We initiated the position because MATH is a net cash stock with two substantial stockholders lobbying management to liquidate. The stock is up 19% to $0.87 yesterday, giving it a market capitalization of $8.0M. We estimate MATH’s liquidation value still to be more than 80% higher at $14.4M or $1.57 per share. That value is predominantly cash and short term investments and doesn’t take into account any further value that the sale of the FPOA technology and intellectual property may yield. The two activist investors, Mr. Zachary McAdoo of The Zanett Group and Mr. Salvatore Muoio of S. Muoio & Co., have been urging MATH’s board to consider liquidation rather than a merger. MATH’s board seems to agree, twice rejecting unsolicited merger proposals, suspending the company’s operations and exploring “strategic alternatives, which could include merger, acquisition, increasing operations in another structure or liquidation.”
The Zanett Group’s most recent share purchases were undertaken between January 22 and February 19 this year at prices between $0.81 and $0.90.
[Full Disclosure: We do not have a holding in MATH. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.]
Greenbackd 
I hold MATH. Despite your worries Manny, I do take some solace in the fact that management did cease R&D last year, so they are not solely acting in the interest of running the lamp dry.
That fact, plus the proposed sale of FPOA, signals to me that they are moving to wind current operations down.
Now will they spend the cash or return the cash? I am inclined to believe the latter, but the risk is clearly the former.
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http://www.istockanalyst.com/article/viewarticle/articleid/3037878
MathStar Inc. (OTC-BB: MATH) shareholders may have to do a little math of their own before the next annual meeting after at least two shareholders called for the liquidation of the firm. The board remains committed to exploring strategic alternatives, but told investors that a liquidation would be too lengthy and preferred to merge with another semiconductor company.
MathStar reported $14.8 million in cash and securities in its most recent filing with the SEC after raising about $137 million from private and public investors. With just 9.2 million shares outstanding, this means that investors could get $1.61 per share in the event of liquidation. This represents a clear choice for many investors looking to get their money back.
MathStar also turned down two takeover offers from private company PureChoice Inc. Many shareholders are now worried that the firm may be looking to make an acquisition of its own that could end up hurting shareholders down the road. Whether or not this message will resonate with enough shareholders will have to wait until the next annual meeting.
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