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Mr. Nick Levis of NSL Capital Management (or someone pretending to be him) dropped by last week to let us know that he takes exception to our characterization of him in our post late last year on Tandy Brands Accessories Inc (NASDAQ:TBAC). We wrote that TBAC presents an interesting conundrum: an undervalued asset situation with a current asset value that has deteriorated significantly over the year and an activist investor – Mr. Levis – with little track record. We ultimately elected not to take a position in TBAC for two reasons:

  1. TBAC, while statistically undervalued on an assets basis, is rapidly losing money. Its current asset value has halved over the preceding year and we are concerned it will slip out of the ER and into the morgue before the doctor can go to work.
  2. Mr. Levis and NSL Capital Management are unproven at implementing catalytic events in listed stocks. We reviewed the public information about Mr. Levis in order to make an assessment as to the likelihood that he could a. influence the board given his slate’s rejection in the proxy fight for board seats and b. turn around TBAC. We concluded that Mr. Levis would have trouble even getting into the ER let alone laying on hands to TBAC.

In conducting our review of the public information and the proxy material, we noted some unusual elements in the contest: Mr. Levis’ defense of his unlicensed firearm charge, his age (29) and lack of track record and his use of a hotmail email account. While none of this would prevent him from salvaging what value there is to be had from TBAC, we did feel that the situation was “a little ‘vaudeville’ for our tastes” and likened it to turning on MSNBC and finding a Three Stooges film playing instead.

Mr. Levis (or someone pretending to be him) has responded in the comments and once again flicked the switch to slap stick:

Hello Greenbacked,

My name is Nick Levis, and I ran the failed campaign to gain board seats at TBAC….

The main reason I lost was as you pointed out, I had a gun CHARGE on my “permanent record” which was dismissed. I did plead guilty to smoking pot (possession of marijuana), and I definitely inhaled. I don’t smoke the devil’s herb anymore, but I think its a statement about your own lack of a personal life to call me
three stooges for going papparazo on here about my “pension for guns.”

Like millions of other regular Americans, I see marijuana as fairly harmless. In fact, many times only those bespectacled socially inept types who remained virgins throughout college have not tried the substance.

So that’s why I lost the contest. You may not think I am “qualified” for the position, but no offense, who the heck are you?

I find it rather condemning that you would call me “too vaudeville” for this position as it appears to me you are a “blogger” with a tendancy for arrogance in your writings. What makes you so special?

Anyways, the investment community is filled with thousands of people who get conned by the Britt Jenkins’s of the world and have no guts. So I let it on the line and tried to stop the scamming there, and it may have even worked – a new CEO is on board who is well qualified (although he owns no stock)….

I merely pointed out in my letter that getting high of reefer when your in college is not the same as ROBBING MILLIONS OF DOLLARS.

If you lose money at the helm of a public company, you aren’t any better than the guy sweeping the streets of your hometown or the cashier at Hardy’s, and maybe you are worse as you could be morally corrupt.

I hold TBAC shares but I feel that liquidation value is higher than you suggest. Still, I enjoyed reading your rant about the company and wish you well finding whatever the hell it is that you are looking for.

This is a tough situation, and I am sure you realize that I DID NOT LOSE THE 49MM DOLLARS – MANAGEMENT DID!

I merely tried to do what the other istitutions are too scared to do – some housecleaning and ARSEKICKING…

So maybe you should pack your bags and come out to new mexico and meet me face to face before satirizing or slandering me. I run a wholesale lumber and trucking business here. We could teach you to go hunting (I promise not to bring a bag of “the chronic” with me this time, ok?)

Adios, been fun bantering with you guys and sorry the votes were cast for the “reckless in not knowing” or intentionally fraudulent ballot slate – again, thanks for focusing in on the victim of the fallout and not the real perpetrators of value destruction – value investors are suppossed to stick together! Regardless of whether we hit the huka in college or not.

Best Regards,
Nick Levis

Res ipsa loquitur.

We’d like to thank Mr. Levis for getting in touch and to wish him the best of luck with TBAC and his future endeavors.

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