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Bullboard - Stock Discussion Forum TWC Enterprises Ltd T.TWC

Alternate Symbol(s):  CLKXF

TWC Enterprises Ltd is a leisure services provider in Canada. Its core business is Golf club operations under the brand name ClubLink One Membership More Golf. The company's geographical segment includes Canadian golf club operation and US golf club operation. It generates maximum revenue from the Canadian golf club operation segment.

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TWC Enterprises Ltd > Undervalue..........
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Undervalue..........

Malpeque2 (117) | July 26, 2022 11:18 am

You posted right over it without blinking an eye?     TorontoJay gave us a number   $18,000 or more in Aurora for a serviced lot,  per lineal foot of frontage.   I know what that means for a 50 foot lot.  Like what we have in Highland Gate.    Like they said,   easily $1M per lot.  

So Thank you TorontoJay for that.    Undervalue,  where is the profit in cash on these house closings?

IMO the "delay"  you mention in getting this project off the ground should probably have helped the profitability of these JV homes,   since the land value has gone up so much in the recent past. 

So Undervalue,  what is our cost basis in Highland Gate BEFORE the JV with Geranium was formed? 

What is our capitalized cost basis now?       Can you figure a cost basis per remaining house/lot,  forgetting the value of the multi family structure that will come at the end of the project,  I guess.

RE:Undervalue..........

undervalue (127) | July 26, 2022 03:07 pm

Perhaps you now get why I prefer lot sales to house building.
There is an MLS for I assume one of the units at 2.688 million for 4000 feet.
Around the corner there is a resale on a 60 foot frontage for 1.748 with 4700 hundred built feet.
With a 900k differential, new is a tough sale.
Lots worth 70% of the value, no way. It used to be a third 20 years ago.  I would guess much less now.
The issue is when you don't sell and build in a timely fashion, you end up losing money.
TWC no doubt is losing money. 
You say they are dirty, I call it complete inept.
They will report very soon, we will see a bit more.
$2,688,000
 
Favourite

56 KLEES CRES
Aurora, Ontario L4G3W8

$1,748,000
 
Favourite

30 KNOLE HAVEN DR
Aurora, Ontario L4G6L3


 

RE:RE:Undervalue..........

carbide (38) | July 31, 2022 10:22 pm

Apparently they forward sold the houses, and then had inflation in materials and maybe labour.  So that explains some margin compression.  But judging by the account on page 11 of the MD&A, they sold the houses at cost, and gave away the land for free.  The magnitude of the loss defies explanation.

You have to wonder what the JV partner's books look like: Geranium Homes, the general contractor earning management fees and presumably leasing all the heavy machinery sitting idle while they wait for supplies.  What kind of builder's margin are they pulling down on TWC dime?

RE:RE:RE:Undervalue..........

undervalue (127) | August 02, 2022 04:00 pm

I do not disagree. 
The sad part is that we now control Geranium as I understand it.
I got caught year ago in Burlington in the early 90's.
I built, and was stuck waiting for sales. The resale market was in the dumps. I was sitting there looking at a bunch of invoices from suppliers and trades. I had to take what I could get. By the time it was done, I had lost 10k a unit. And I worked my butt off.
Rai has not paid attention. I will repeat. Homebuilders earn their keep. We should just be selling land packages. The cycle has turned. I expect little activity at HG this year.

Rev tracking for May Golf.
Revenues rebounded in May showing a 30.3% increase nationally over May 2021. Ontario posted a strong 126.1% increase in dollar revenues likely a result of the May 2021 closures due to COVID mandates. The Atlantic (41.2%) and Prairie (29.5%) regions also recorded strong revenue increases likely from membership and package sales as both regions are showing a decline in rounds for May 2022. British Columbia is showing a slight decline in revenues for the month likely caused by the cool rainy May weather and the resulting 23.4% decline in rounds over May 2021. YTD revenues are 12.2% ahead of last year almost wholly due to the significant year-over-year change in Ontario and to a lesser extent the Atlantic region growth. 

RE:RE:RE:RE:Undervalue..........

Malpeque2 (117) | August 04, 2022 03:38 pm

Undervalue............I know this is the TWC Blog,  but I was wondering,  since your into RE and undervalued shares,   have you ever taken a look at Morguard  MRC,   and it's daughter Morguard REIT,   MRT?       They seem to have a lot of assets in there that seemingly never get sold,  and trading well  below book.   

Rai's friends on the BOD of MRC seem to buy the stock from time to time,  as RAI and the company buybacks do here at TWC,  but I have not seen another insider buy here at TWC except RAI or the Company,   never another  director or officer here at TWC.      Do you think that means anything?

RE:RE:RE:RE:RE:Undervalue..........

undervalue (127) | August 05, 2022 10:36 am

Mrc is a very inexpensive stock.
I do not hold. Probably should.
I was amazed at the dividend bump at Twc.
It appears that they cannot buy meaningful shares back.

RE:RE:RE:RE:RE:RE:Undervalue..........

Martin1 (4) | August 05, 2022 10:56 am

I still remember the days of 7.5 cent dividends.
But a nice increase none the less.
I have a very small position in MRC. Bought in 2020 at $128. Down 15%.
Buy more to average down? Have done that in the past and it didn't end well.

RE:RE:RE:RE:RE:RE:RE:Undervalue..........

undervalue (127) | August 05, 2022 02:19 pm

Bought a few of MRC at 112 today.

RE:RE:RE:RE:RE:RE:Undervalue..........

carbide (38) | August 06, 2022 04:47 am

Amazed at a 1.25% dividend yield?  ;)

As I understand, they can only buy 10% of the free float, which is 20%, so 2% per annum, which is not material.  Except for block sales.  So we are told, they are interested in blocks for sale.

Liquidity will continually dry up.  Eventually it has to be bought out.  How long is anyone's guess.