TSX:NWH.DB.G - Post by User
Post by
TheBridgeon Apr 27, 2023 12:06pm
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Post# 35417176
The Changing Situation
The Changing SituationIMO, there have been a lot of interesting developments with NWH.UN over the last while in terms of the share price and ownership changes. Possibly many shareholders took advantage of the currently low share price to do some tax loss selling, some of them have/will return after the 30 day limit and others are new owners of NorthWest. Some of those tax loss individuals may have invested in new opportunities that the current market has presented, the others are waiting to get back in. The new owners are waiting and hoping that they have something with potential. But, the $75m convertible debenture bought deal has reduced significantly the financial concerns for those NWH holders who had that concern prior to the deal. Currently NWH has a book value of $10.21, pays an annual dividend of 9.89% and has an operating margin of 28.81%. And yes, they have a significant amount of debt at a revolving rate and yes they also have an inflation factor within the leases that they hold. And yes, it is possible that some of those lease holders may have difficulties paying their lease if the the economy were to go into recession. There will always be risk with investments, but it appears to me that at today's share price offers a significant opportunity for some excellent capital gain along with the collection of the dividend. I offer these points for discussion and hope to learn and benefit from input that others can provide.