GREY:CMHXF - Post by User
Comment by
LongRoadon Sep 12, 2017 9:20pm
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Post# 26688001
RE:Share repurchase - not so good for us
RE:Share repurchase - not so good for usCMH is not a stock to trade as at times the turnover is rather low even with the existing float.
On the other hand, here are some other items that will have a significant impact to its valuation.
- ROE will increase by a meaningful percentage
- The recent acquisition of Vega and CMH's increasing growth in the Marine sector
- The proceeds and gain on sale of On-Grid Power business
- CMH continued focus on M&A
- Debt free at present
- James Meekison purchase price is $5 per share from Sonnenfeldt. That is his starting point. He has a history of buying and selling companies.
- While the EV/EBITDA valuation of CMH remains unchanged, if they manage to reduce the number of shares by 24.3% they will have effectively increased the value per share. Here are a couple examples - If the value was $4 before, it will be $5.28 after. If $4.50 is the value before, than $5.94 will be after.
janeintoronto wrote: CMH was already a very small cap stock, barely $100mm (24.6mm shs @$5). Worse still, the public float was just over half that. Not exactly of much interest to institutions. If CMH buys all 6 million shares they are looking for from pubic shareholders (the offer memo says the insiders aren't selling), insiders will control 49%, Sonnenfeldt another 13%, and the public float will only be ~7mm shares or 37% or $35mm.
CMH got a TSX exemption from the requirement to obtain a formal valuation based on CMH's argument that the shares' market would not be materially less liquid than it was before!!! Seriously??
I think this is just a creeping creepy takeover. Yes? No? I'm still mulling it. The offer expires 4 October.
[Generous ratings are always appreciated.]