Dorel Industries Ord Shs Class A T.DII.A

Up 18% today

[batrous]

Anyone have any ideas why. Did the shorts buy out their positions or something?

[jmkOttawa]

I was curious as well.

[McRambus]

I doubt it is short covering, There are not that many shares short, only 600k or so, It is going up because this is grossly undervalued. I bought some more last week too. Remember when Cerberus tried to buy this for a song, Letko Brosseau valuation was $56.38/share which included the sports division. Both juvenile and Home should be worth $20-$25/share should they get to profitability. 

[jmkOttawa]

Agree, totally. They have moved maunfacturing back to North America for the most part, supply chain issues are no longer a sgnificant problem, the excess inventory  has been absorbed, and with interest rates high- consumers are very open to affordable products that they are producing and selling. They have adequate liquidity, and with total sales of 1.6 B, the market cap of more or less 200M

[jmkOttawa]

Forgot abouut Gate City Capital with over 10 percent of the Class B shares. All three (Letko Brousseau, Gate City, and Brandes  known for value investing)

[McRambus]

Don't forget that Gates City Caoital quietly bought up a 3 million share position for a 10.5% stake. So between management, Letko, Brandes and Gates this is very tightly held. 

[jmkOttawa]

So true, and they will likely return to profitability in 2024.

[McRambus]

Also Letko Brosseau has added to their position several times the past 6 months. This stock could go up 100% from right here and the valuation would still be a joke. LOTS of upside here folks.