1./ Here is a cool story about the chart below of Patrick Industries $PATK 
2./ In 2007, Patrick Industries issued senior subordinate notes to Tontine Capital for $14 million in cash. Tontine also purchased 980,000 shares of Patrick Industries in a private placement at $11.25 per share. This capital was used to complete an acquisition.
3./ Patrick Industries manufactures and supplies building products to the Recreational Vehicle (RV), Manufactured Home (MH), and Industrial markets. In other words, they make most of the stuff that goes inside an RV or manufactured home.
4./ When Tontine Capital provided the capital in 2007 they had no idea the financial crisis was about to punch them square in the jaw. Patrick Industries business was severely impacted.
5./ Tontine purchased another 1.1 million shares at $7.00 per share. In May 2008, they purchased 1.7 million shares in a rights offering.
6./ By the time Todd Cleveland took over as CEO on February 1, 2009, Tontine owned 5.1 million shares or 57% of the company. The stock collapsed to under $1 per share.
7./ Patrick Industries was a $5 million market cap company. You couldn’t give the stock away. No one was buying RV’s during a financial crisis. Even Tontine filed a 13D stating they were looking to explore alternatives to dispose of their shares.
8./ No one would have been surprised if Patrick Industries would have ended in bankruptcy. But it didn’t end that way. Todd Cleveland turned things around and the stock is up 17,000% since he took over.
9./ What is crazy is Tontine's original investment in 2007 was down 95% by 2009. They averaged down. Since then, they’ve recouped ~10x their money, and they are still long the company.
10./ Tontine wasn't some private equity firm making up some valuation, “mark to make believe”, on a private business. Tontine saw the real-time market price every day. They lived through the rollercoaster.
Investing is Hard
Investing is Hard
