Supremex Inc T.SXP

"Top line is vanity, bottom line is sanity"

[mrmoribund]

I think I got that right.

Must say I quite liked SE's closing summary. Let it not be said there is no poetry in the packaging / envelope business.

Weird to me that the stock is still down (a bit) on the news this morning. Looked pretty solid to me and I have no doubt this is a very solidly-managed company.

Part of the weakness in the stock is likely due the state of the stock market itself. One comparison. Urbana Corporation (URB.A), closed end fund. Excellent record as stock pickers. Just look down their holdings list. Used to trade at roughly a 45% discount to NAV per share. But now it's closer to a 53% discount. It seems to just be the current mood of investors--at least in the value space.

Beats me how you reconcile that with Shopify currently trading at 12x sales and 10x book value. No crazier, I suppose, than what was going on in 2021.

[bucheroncapital]

I personally added stocks this morning under and around $4 thanks MR MARKET !

[mrmoribund]

One factor likely in the current share price. A dividend yield of 3.5% isn't really worth a hoot anymore. You can get 7.5% on BCE and better than 4.5% on cash. I'm not suggesting Supremex should raise (or lower) its dividend. I'm happy to take it. But know that the dividend won't draw people to the stock to anywhere near the degree it did a year ago. Below $4 I'd say it's

[bucheroncapital]

As far as SXP is concern the dividend is just a bonus , in BCE case It’s the main reason to invest. But if you combine the NCIB and the dividend the reason to hold SXP is more justified.  It's now deeply undervalued so time is our ally , and our enemy should a bid appear to buy the business then de 90 day MA would Mather and cheap stock would be tempting to build a discounted bid !!! Hold