It is far from a no brainer. Book value has been going down, and the book value isn't really available to shareholders if the company never liquidates. From now until kingdom come, unless mortgage streams become huge and the main focus of the company, almost all cash flow must be reinvested due to the short nature of the streaming contracts.

Additionally, the book value in the event of a liquidation would not be realized, as management would still be employed and trucks would still need paid to pick up and deliver the canola. To me, a discount to book value is highly justified given the performance of management, the trend in reserves/book value, and the long drawn out liquidation that would take place (6+ years).

I will need to check the results when they come out, perhaps mortgage streams have radically changed the picture, but for now I don't think IFRS book value, nor my preferred proxy for book value (value of reserves - necessary crop payments + cash - liabilities) is a good indicator of value. If you want to tie intrinsic value to book, include the adjustments for liquidation. Otherise I think it is more accurate to value Input based on its future free cash flow, which just doesn't seem that great.

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