RE:GH Institutional ShareholdersThelongview wrote: We have two institutional shareholders; CI Investments, and Burgundy Asset Management.
CI Investments
The story here starts with a company called Sentry Select Capital Corporation (Sentry). Sentry has been a GH shareholder for a very long-time – before 2006 and before GH’s 3:1 stock split on April 21, 2008 – and was acquired by CI Investments (CI) in 2017. While it remains an operating unit of CI, all filings are under the CI name.
As of October 30, 2023, CI held 2,563,900 shares of GH, and this represents 11.81% of all shares outstanding. So far, CI has never sold any shares.
The last time CI transacted GH shares was on November 2, 2020 when they purchased 125,600 shares.
Burgundy Asset Management
Burgundy originally purchased its GH shares on November 30, 2020. On that date, it purchased 2,365,399 shares. While it is unknown at what price they were acquired, we can get a clue by looking at the high and low prices that were traded on the TSX (however they most likely were purchased on an ATS – Alternative Trading System). The high and low on the TSX on November 30, 2020 was $5.96 - $5.79 and so we can assume that Burgundy paid a similar price.
My first purchase was on November 26, 2020 at $5.90.
Burgundy sold 312,703 shares on October 5, 2021 at prices that were likely between $7.87 and $8.00 as that was the trading range on the TSX that day – again however, the shares most likely traded on an ATS. This sale brought Burgundy’s holdings in GH down to 2,052,696 shares and have remained at that level today.
This month’s trading action
GH has resumed its NCIB at the end of September, when they repurchased 800 shares. While the number of shares repurchased is small it is nonetheless a significant event as it marks the resumption of the Company’s NCIB.
October has seen GH continue its NCIB. Remember that it can purchase up to 2,445 shares per day under this new NCIB.
However, GH is allowed to purchase more shares if it desires and does so periodically, outside of its NCIB.
We have seen a 70,000 share transaction in October and a 216,300 share transaction yesterday (October 31).
I have not seen any Alternative Monthly Report (AMS) on SEDAR+ to disclose the 70,000 share trade. An AMS is required to be completed by an institutional holder and is usually filed about one week after the transaction date. Since I have not seen a filing (at least not yet), I assume that CI and Burgundy are not behind this 70,000 share trade. However, a later filing may appear and so we must not assume with certainty that it was not one of our institutionals.
The 216,300 share trade is much larger and very likely one of our institutionals. Of the two – CI and Burgundy – it is most likely Burgundy as they have sold before while CI has never sold and has been a holder of GH stock for about 20 years.
If Burgundy is on the 216,300 trade ticket, it would be the second time they sell shares.
CI appears to be a very committed shareholder. Burgundy appears to be very much shorter term. It could be very possible that Burgundy continues to sell as the share price increases. They sold the first time at approximately $7.87 - $8.00 and they are likely behind yesterday’s sale at $9.00.
This is relevant because GH may be buying significantly more shares over the next few years if Burgundy decides to exit. This would significantly increase our free cash flow per share.
While no dividend increase appears to be happening anytime soon, it is in the greater good of all shareholders that GH continues to retire stock. You can refer to my past post of stock buybacks and what a wonderful thing they are when acquired below intrinsic value.
Another exceptional post.
Thanks, TLV.
With that said, I continue to suspect the company is preparing for Q1 dividend increase.
This is more of an opinion of gut, not of fact.
Size could vary between +0.01/mo to +0.03/mo increase.
Odds of dividend increase will improve if this Q3 is as spectacular as
TheBridge has promised.
Dreaming of Bonus Rounds............................................ we'll see.