Another take on BIRToday I sat down to watch Francis Horedelski’s morning program. I’m not sitting there three minutes before she’s talking about how beat up Cdn equities are right now. Then she flashes a list of solid Cdn companies that represent good value. Right in the middle of that group sits Birchcliff.
I think a lot of Canadians hold that stock because Schulich is behind the company to the tune of 25% and he brings a fair amount of reputation to the table. Even with his presence it hasn’t been an easy ride for the long term investor but they do have one consolation, - that Schulich and management won’t bail before them. As naïve as that sounds, that’s how I see it!
But this stock has had one helluva run from the $6.85 or so of last summer to almost $15.00 this year with plenty of exit points along the way. But surely $15.00 is too expensive for a buyer’s starting point in a bidding process. As far fetched as this may seem, maybe there’s some maneuvering taking place to get BIR into a position to attract a buyer for a takeout at some hypothetical $17.00 figure. After all, a buyer needs incentive. Maybe this prior run-up to $15.00 got in the way of the selling process. It’s possible..... After all, “there are more things in Heaven and Earth, Horatio,than are dreamt of in your philosophy.' But surely $10.34 is way too cheap.
But the TSX got taken to the woodshed today as well, so maybe BIR was simply tarred with the same brush. I would like to get through tomorrow and use the weekend to get some further context.