GMP Capital Inc. Cumulative Floating Rate Preferre T.GMP.PR.C

RE:RE:Has Anyone Been Paying Attention to the Preferred Shares?

[Actinolite]

Here's the link: https://www.bnn.ca/jerome-hass-top-picks-october-4-2016-1.579508

Article for the mechanism he's describing in the video: https://gmpcapital.com/Investor-Relations/Newsroom/ArticleId/260/may-5-2015-gmp-rfgl-and-rgmp-announce-richardson-gmp-shareholder-liquidity-and-investor-agreement-amendments

harrywoo wrote: I couldn't find the BNN interview but I am not surprised.  The prefs would seem to be very stable and a nice yield in a low interest rate environment.  The link you mentioned talks about the possibility of them being taken out a par ($25.00) if the Richardson GMP transaction results in a change in control.  I do not see how that transaction would lead to any change in control.  It would simply result in cash coming into GMP Capital.  Harris Fricker has mentioned on past conference calls that he views the preferred shares as a very low cost, base level of financing for the company (remember, they pay an interest rate based on $25.00, and both series have a very low rate).  But if the $150mm for RichGMP comes in, that shores up the balance sheet even more, and that gives the prefs more strength.  But a better argument to me is that getting about 2 bucks a share in cash would result in huge optionality on what they could do with the commons.  Share buybacks, etc. (plus the new FirstEnergy guys are common shareholders, not pref holders).

Speaking of Fricker, on the last conference call he promised financial disclosure on FirstEnergy to show that they paid under 10 times earnings, averaged over the past 10 years or so.  But there has been no disclosure on SEDAR about the FE transaction and that is disappointing (only the redacted share purchase agreement).  I wonder if the analysts have been asking about this?