Westbond Enterprises Corp V.WBE

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[scarface9]

Divy back, but not as high as before 

https://ca.finance.yahoo.com/news/westbond-increases-profit-quarter-ended-185500132.html

[JayBanks]

Booya! I like it, It's a starting point and maybe we see some life again! At current price that's a 4.55% yeild... (my yield is 2.74) I'll have to dive into the numbers a little more.

[scarface9]

Their MDA wasn't very extensive. But they did seem to guide towards increasing sales volumes.

[JayBanks]

I actually like what I seen on filings. Increased sales in all areas except to the wipes that had a temporary government contract, and this was still in a depressed market due to Covid restrictions. And they expect sales to pick up in most segments once we reopen fully. Sounds like they have created a tailwind on getting Health Canada certification for thier products to be approved in semi

[scarface9]

Market not showing any love. New 52 week low. On the bright side, I didn't buy more at .46. 

[scarface9]

They should be buying back shares. New 52 week lows set day after day. No support.

[JayBanks]

LoL with what money? They have a market cap of 11.4 million, they generated 218,000 in profits last quarter, they are paying us out about 180,000 of those that and while paying down a debt... This company is rather small, I think I seen something like 20-30 employees somewhere. And if they are buying back shares it would be more likely they take themselves private. A company this small is

[scarface9]

Yeah, I was just blowing off some steam.  It's actually amazing. My portfolio has risen in value despite how bad this and one other stock I own have been performing. I thought with the divy, they would at least hold steady, not continue free falling.  Like I said in a previous post, I'm just glad I didn't add more at .46. I have a stink bid in for .20.

[JayBanks]

I like to usually throw 2-3k at these underfollowed but interesting plays myself unless I have real conviction and I do a 5-10k, currently I have 3k here but If I can free up more I'd be interested in putting this to a 10k play. Like you, I'm fairly content even being in the red here too. I like what I seen and the outlook, management seems shareholder freindly with great capital planning

[scarface9]

You've touched on a concern I have. If someone decided to take them out at this low price I lose even with whatever premium would be offered. I'm down 50% based on today's price, very unlikely they'd get a premium like that. I don't think they're about to be taken out, but the lower the price drops could increase the risk of an opportunistic bid. Have you ever looked at GH

[JayBanks]

  Sorry for a delay, I forgot to bounce in here. I don't know much about GH or the tech, gaming or gambling sectors so I'm not a good/credible opinion on this, the divided yeild looks interesting and I see why it would show up on the radar, but it's paying less than before but it's heading towards a higher SP, I don't know why and but that raises red flags, also

[scarface9]

No problem. I ended up buying SPB and they announced a PP right after I did. I couldn't have timed that any worse. Oh well, I'm in for the long term but it'd have been nice to have gotten in cheaper tomorrow.

[JayBanks]

SPB is a more stable company I'd feel comfort in, I've had and have a couple of those and this has been in and outta my radar but I've always tended to be looking at it when it's making noise in its highs. I put it on par with KPT, FC, RUS, RSI, BRE ect and most REITs, the dividends are regular and not much happens to alter them despite noise going on within them from time to

[scarface9]

Do you ever hold a core position and just sell some for profits, or you always fully exit when you sell? You ever buy preferred shares? There's a couple good yielders out there if your after 8%. SPB has a big growth through aquisition plan (buy $250 per year through 2026). Plus Brookfield is involved, so I decided to roll the dice and go along for the ride. I used to own RSI many years ago,

[JayBanks]

  Usually the plan is for a full exit unless I'm selling to pay for something which is rare. If I'm selling I've had plan change or achieved a goal. But I've had messy exits where I've only had partial sells as I like to use limit orders, like yesterday I had a 11,000 sell order on PJX and because of low volume only 500 sold, still trying to exit but hopefully all shares

[scarface9]

I've had partial filled orders on buy and sell side too. Can be a pain. I'm actually still holding a few hundred shares of a company I tried to unload years ago before it's share price collapsed. I've done really good on preferreds. They've all doubled. I bought a few different names. I added to my position in one a couple of weeks ago because it pulled back and the yield went

[JayBanks]

  Yea I get caught fairly often filling small partial buys and sells when playing with low volume names. I don't know much about preferreds other than they are first to get paid if there is a problem. Is there a feature to them that has made them all do well for you, or have you just bought them in good companies? Usually I see them for defensive or institutional investors who are

[scarface9]

I think there was some luck on the preferreds. On the other hand, they were grossly undervalued by the market. For example, if a company wanted to cancel out/redeem their preferred shares, they have to pay the price they issued them at, usually $25/share, (does happen, but rare). I bought mine for $10. Lowest yield 12%. The risk reward was too good to pass on. Divy chasers finally caught on. Lucky

[JayBanks]

Do preferreds trade similar to debentures? I've been learning about them a bit. I just got informed to watch conversion prices on debentures, which I never thought about, I just looked at them as company bonds where you just get interest and you investment back. I know some companies have different preferreds and debentures series. I got into VSN about a year before the sale, I had PPL on a

[scarface9]

Preferreds trade like regular stocks, but their dividend rate resets (usually every 5 years) It's affected by interest rates, so you hope rates go up before the reset date.  Debentures are debt, which can be converted into shares. Companies are supposed to pay holders their money back plus interest at maturity. If you do buy debentures, make sure they have a strong balance sheet and can

[JayBanks]

Are there ways to find out when rate resets are coming up? I see debentures all the time with my bigger companies and seems like they like to issue new series with 3+ years timeline and call in the soon to expire ones as a way of extending timelines. I've always seen the conversation rate but never actually articulated what it meant until someone pointed it out on the DIV board. I've

[scarface9]

For learning about preferreds, I'd say this link is the best.  https://canadianpreferredshares.ca/list-of-rate-reset-preferred-shares-canada/ There another couple of links in blue in the first paragraph. He used to actually show the reset dates for all and even had scenarios for what the yields would be based on different interest rates on spreadsheets. It looks like he changed his

[Larrymartin77]