Value Of NJ Wrestling Coach's Company That Owns Deli Hits $100M

PAULSBORO, NJ — A legendary New Jersey wrestling coach is at the center of a mysterious stock market investment that has seen the value of his company – which owns only a small deli – skyrocket to $100 million amid the coronavirus pandemic, according to a federal filing.

Paulsboro High School Principal Paul Morina’s Hometown International owns just the deli and watched its value soar despite having only $21,772 in sales in 2019 and $13,76 in sales last year, according to the company’s filing with the Securities and Exchange Commission (SEC)

A national figure has taken notice. “HWIN reached a market cap of $113 million on February 8. The largest shareholder is also the CEO/CFO/Treasurer and a Director, who also happens to be the wrestling coach of the high school next door to the deli. The pastrami must be amazing,” Hedge Fund manager David Einhorn wrote in a letter to investors.

It's not immediately clear how Morina's company gained so much wealth so quickly. The legendary coach, who guided Paulsboro to 25 state wrestling championships, owns 1.5 million shares with warrants for another 30 million shares, according to the company’s filing. Hometown’s stock closed at $13.50 a share on Thursday.

In his letter, Einhorn seemed to suggest that he had some idea as to how Morina got there.

“Small investors who get sucked into these situations are likely to be harmed eventually, yet the regulators – who are supposed to be protecting investors – appear to be neither present nor curious. From a traditional perspective, the market is fractured and possibly in the process of breaking completely.”

Efforts to obtain comment from Morina on Friday afternoon were not immediately successful. But in its SEC filing, Morina's company described the challenges presented by the pandemic when it was closed from March 23-Sept. 8 of last year, with a grand re-opening on Sept. 22.

“The (temporary) closure and other effects of COVID-19 had a material impact on our business during 2020,” the company said in its filing. “Although we are unable to estimate the ultimate impact, it is anticipated that the COVID-19 pandemic will continue to effect the flow of customers into the deli throughout 2021. Those customers include commuting workers, local students and coaches who frequent the sports facility on the property and the reduced number of people willing to dine outside the household.”

Hometown is a Nevada-based company that incorporated in 2014, according to the filing. It opened its first and only deli in Paulsboro on Oct. 14, 2015.

“We operate a delicatessen store that features ‘home-style’ sandwiches and other entrees in a casual and friendly atmosphere,” the company says in its filing. “The store is designed to offer local patrons of all ages with a comfortable community gathering places.”

On July 1, 2014, Hometown entered into an agreement with Mantua Creek to rent store space for $500 a month. Morina is a member of Mantua Creek.

Morina’s biography in the SEC filing lists his accomplishments as an athlete, coach and educator, but makes no mention of his food acumen. He is listed as the business’s president, CEO, CFO, treasurer and director.

“We believe that Mr. Morina’s in-depth knowledge extensive experience makes him a valuable member of our board of directors,” the company says in its filing.

The filing says the same thing about Christine Lindenmuth, the company’s vice president, secretary and director. She is a math teacher at Paulsboro High School. Like Morina, she has an extensive education background but no prior food experience, according to the filing.

The chairman is listed as Peter L. Corker Jr., who is also the chairman of a company based in Hong Kong. Four other owners are listed as being based in Macau, China.