RE:Bruce Campbell - BNN - PAST TOP PICKBruce Campbell said his investment firm was holding their TWM shares in a dividend fund and sold as soon as the dividend was eliminated. I suspect there are quite a few other investment firms holding some TWM in dividend/income funds and most of these funds will have the same reaction as Campbell and sell the shares because of the dividend removal. Pretty much guarantees selling pressure for a few months, or more, unless something happens to generate strong demand for TWM shares. Will the NCIB buybacks IF they get started in Q1 have any impact?
FWIW, my guess is that the shareholder base for TWM is no more than 30% individual shareholders, with the other 70% institutional investors of various kinds (mutual funds, pension funds, family offices, endowmnet funds, etc). Leaving out the 23% owned by Birch Hill which I think we can assume are probably not going to be sold, leaves around 50% or more of shares that will be subject to a "do we keep them or not" decision over the next couple of months. How many of these will wait until the Q4 results come out in two months to make a decision? I am sure there will be some inertia particularly since I suspect well over 50% of shareholders are not in a profit position on their shares. Putting it another way, I do not think anybody has a clue where the share price will go over the next few months and the selling pressure may outweigh the good news from the Pipestone sale.