Letter to the RSSS Board

I've originally wrote about RSSS in the Long Cast 4Q22 letter, which can be found here. I think the new CEO, Roy Olivier, is operating at a high level and recent results support this view. He's appropriately  investing in growth and achieving early signs of cash flow and profitability. 

And yet bizarrely the Chairman and founder, Peter Derycz, has started a proxy fight to try to regain control of the Board and push him out. It's just a bad look when the Chairman undercuts the CEO and in this particular case its puzzling and quite stupid because the new CEO is achieving levels of financial and operational performance that founder never could. The complaints are idiotic. I met Peter when he was CEO and I chose not to invest in the company because, though he seems like a nice person, he struck me as a low quality CEO and these actions reinforce that view. 

The Board responded to his letter and is supporting the new management team. Other shareholders, including this large one, have chimed in as well. I thought it would be helpful to put together a short compendium pointing out the stupidity and hypocrisy of the Chairman's complaints. It's really important to point out that by my estimate more than 90% of the shares the founder and his cohorts, including his brother in law, own, were granted to them when they were in charge, regardless of operational performance and despite their years of mismanagement. 

Here's the letter I wrote to the Board ...