Terry Smith's alleged wrongdoingThose you who believe that Terry Smith has done some unethical things in the past, could you please provide details. I am new to this board.
From a fundamental point of view, I think an investment in Boyd is based on whether you believe the car body repair business will rebound and whether you think Boyd has fundamental value.
The current payout is close to 15%. The payout could be reduced by a third and still be a reasonable 10%. Perhaps this is what investors are concerned about--that in fact Boyd will have to cut distributions again in the future.
My own opinion is that should Boyd drop to a price close to $4 per unit, barring any announcement regarding a fundamental deterioration in the business, it would represent compelling value. Such a price would more than reflect any risk of a distribution cut.
The level of income coming from the US is a currency risk in spite of any natural hedging, and this may also be weighing in the unit price.
I am somewhat concerned about liquidity, but perhaps those of you who have studied this stock more closely can tell me if this is an unfounded concern.
Regards
G