This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Red Oak Partners, LLC Announces Resignation Of Red Oak's Designees From The Board Of Directors Of RF Industries, Ltd.

Stocks in this article: RFIL

NEW YORK, March 25, 2013 /PRNewswire/ -- Red Oak Partners, LLC (" Red Oak"), today announced that its two designees entitled to serve as Directors on the Board of RF Industries Ltd ("RF") (NASDAQ: RFIL), David Sandberg and J. Randall Waterfield, have resigned effective immediately and in accordance with the terms of the agreement reached between RF and Red Oak on August 29, 2011.  Under that agreement, upon Red Oak's ownership falling below a threshold level as defined in the agreement, its designees shall no longer be entitled to serve on RF's Board of Directors.  After significant appreciation in RF's share price in recent months and largely via sales effected under a 10b5-1 plan, Red Oak's current ownership level is now below the required threshold as defined in the agreement.  Although Red Oak has no influence over whether its second designee, Mr. Waterfield, will resign or not, Mr. Waterfield has agreed to honor the agreement and resign effective immediately as well.

Stated David Sandberg, Red Oak's Founder and Managing Member, "RF has been a successful investment for Red Oak, more than doubling over a sub two and one-half year investment time-frame with such return excluding additional capital returned to shareholders via dividends (and we recently proposed to the Board and achieved a sharp increase in the regular quarterly dividend).  Red Oak and RF initially established ownership terms in its 2011 agreement to ensure Directors had sufficient skin in the game.  Given Mr. Waterfield and I no longer have the levels of share ownership which we believe Directors of public companies should have in order to be aligned with shareholder's best interests, we are resigning effective immediately.  Despite my resignation, I have offered to assist RF, if requested, to evaluate new Directors, to improve its governance policies towards making RF more shareholder friendly, and to assist with certain strategic and other transition issues over the next few months, all at no compensation.  Mr. Waterfield has indicated that he too is willing to assist the company on such matters upon request and at no compensation as well." 

Continued Mr. Sandberg, "The timing of our resignations allows RF to add other independent Directors before the upcoming annual meeting.  To optimize shareholder value going forward, I strongly suggest that RF's Board also:

  • add more independent Directors (noting that two independent Directors worked at Teledyne with RF's CEO), and that such Director nominees be referred by RF's large shareholders to ensure true independence;
  • adopt Board rotation policies to ensure that fresh perspective exists and that current Directors represent current shareholders;
  • ensure that current Directors retain sufficient share ownership in correlation to their years of tenure (ie., the longer you serve the more you should own) so as to be aligned with shareholders, and retain at least the ownership levels defined in the August 29, 2011 agreement;
  • pursue formal and professional processes, including regarding the evaluation of several candidates with requisite past CFO experience for the vacant CFO position;
  • and consider retaining a credible banker to oversee a strategic alternatives process, which is something I believe all business should do periodically to ensure that shareholder value is optimized.

"We believe RF has a strong niche and should continue to generate positive cash flows going forward.  Red Oak wishes RF the best of luck going forward.  It's been a pleasure to serve as a Director and to witness the dramatic recent growth and share appreciation."

David SandbergRed Oak Partners, LLC(212) 614-8952 dsandberg@redoakpartners.com

SOURCE Red Oak Partners, LLC

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,801.04 -9.02 -0.05%
S&P 500 2,066.56 +3.06 0.15%
NASDAQ 4,741.3260 +28.3560 0.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs