RE:RE:RE:RE:RE:RE:Hows that 3 year valuation plan looking ms gavan?dsark wrote: TheCapitalist wrote: dsark wrote: Northforce13 wrote: "I'm wondering if the market thinks more write offs are happening, which would bring down book value?"
Well they said they were committed to closing the gap between NAV and the share price. Notice that their NAV has been dropping readily every quarter, so maybe their plan is to keep writing down the NAV until it is equal the share price.
Well accounting rules are forcing them to be conservative and keep impairing their buildings for whatever reasons. But you are right, their NAV was $32-34 not too long ago, now it's at $30. Shave a few dollars off of $30 and you have a NBV that is relatively close to share price. They should be driving book value higher by shrinking the float. It really makes me wonder if Jane & the Coop realize that buying units for cancelation at 60% of BV will increase BV per share.
I was thinking more about what you said here, dsark. They have to know cancelling shares at a discount will increase BV/S. They're doing exactly that with DRA.UN. They also cancelled a ton of D.UN shares back in Jan (to no net gain). For whatever reason they're not doing so again. It doesn't add up, especially given their current financial safety (massive revolver, super low payout, low debt/BV ratio etc).
It makes me wonder what their agenda is, and if they're simply acting out of self interest instead of the interests of shareholders.
I have wondered the same thing. I was ready to reload back into this with almost everything I had but they are not doing the one thing to help shareholders. Cutting the dividend is not helping shareholders if the share price falls back to $16-$17. I wonder if they want it to fall so they can sneakily buy shares on the cheap & not disclose it to the public. Then just announce they did this massive buy back on the cheap in stealth mode. I don't even know if that's allowed. However why would Jane be unloading in the $20's if my theory was remotely true?
The Curious Case of a Fading Dream!
Exactly. Why would the CEO unload knowing that share price was so cheap compared to NAV? It doesn't stand to reason. If you could buy a dollar of assets for 60 cents, most would jump at the opportunity. Doesn't make sense.
I'm honestly tripped up over D.UN. The company has such potential. Furthermore they've been in this situation before (circa 2009?) And shares rose to ~$40.
It's like a bad relationship, man. I don't know if I should stay or or if I should go, hahaha.