OTCPK:TMBMF - Post by User
Comment by
dosperroson Jul 27, 2017 10:41am
216 Views
Post# 26516152
RE:RE:RE:RE:TMB earnings
RE:RE:RE:RE:TMB earnings
Glass half empty, we'd take a trip to Ripley's Believe it or Not and wait to chat with Jimmy. With CFP having over 50%, the future is in their hands.
That said, money talks and this is cheap. Perhaps the cheapest on the TSX with TMB gone effectively now. So, I've been buying at this price. After all, what can they do with all their cash? They are only paying out 10% of their cash and have no debt. Eventually it'll have to come back to us. Either it rolls into the parent co, or they just increase the div by 4x (no sweat) and be done with all the malarky.
They can't and won't sell for a standard take-out of 30% or so. If the EV is $700M, that's a $1B takeout (say $18/sh). That's a small fraction of the true replacement value. Jimmy will tell any suitor to pound salt. The asset value of 4 upgraded NBSK mills with power upside is closer to $4B by my estimates.
My only worry is they really don't care about shareholders. At all. It's an awful situation that would have been corrected by an activist (read an Oaktrree or Fairfax) if it wasn't for the Jimmy domination I think.
Finally, they are not the same beast as TMB. TMB had a SC business like RYAM and is integrated. Oh, N/M. Maybe I get the question now -- yah. I could see RYAM selling TMB the NBSK mill in Kapuskasing on the cheap. Like for $50M or something. Then they can optimize it and put in some power capacity. That would be cool.