RE:RE:even Bruce Campbell-stone castle investment not talking MBANumber one, that guy is a Joker. Most of those BNN guests are total dusters. Just watch the recent episodes where one by one their top picks lost 30-50%. These guys just don't know how to invest. It amazes me.
Number two, like I said before, because of the JVs and the minority interest, poor college operational cashflow (which is what shows up as EBITDA on Bloomberg), and management fees and property earnings appearing as "other income", the average investor and even the "expert" wall street gambler do not understand this company. Furthermore, they are too lazy to read the annual report.
The perfect example is the comment before about 350M in assets. Well, a lot of that is actually owned by the minority interest through the JV's. In reality, the Book Value attributable to the shareholders is what 0.64... So the average investor looks at this company and says, it makes very little cashflow (0.02/share last Q), it's priced around book value... Hence why we are at around 0.70/share. And then there is the liquidity problem.
I know some people have owned this for a long time, but using book value, who's to say that 0.70 isn't a fair price for a real estate developer (there is another 0.18/share in unrealized gains on Pearson I believe). I mean CIBT's accounting fair values the properties on completion, which is reflected in their book value. The market in general might not be willing to pay for future projects that "might" be successful and future management fees that might happen in a market that sees real estate as overvalued in Canada, especially in Vancouver. One thing is for certain, the colleges are a crappy business. Sorry, I'm just laying down the facts.
Now you might not agree with the market. If you believe that CIBT will roll out all these projects in the next 5 years, then you could argue that CIBT is very undervalued and the BV will grow at 30-50% a year and perhaps so will the stock.
Again, if this were a private company who's stock price wasn't quoted daily, all the shareholders would probably be happy. All you have to do is ignore the daily stock quote, pretend it is private, and look at the performance of the company. Eventually something will happen to create an exit opportunity.