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Becker Milk Co Ltd T.BEK.B

Alternate Symbol(s):  BCKMF

The Becker Milk Company Limited is a Canada-based company, which is engaged in the ownership and management of retail commercial properties in Ontario, Canada. The Company primarily leases retail stores with a few residential sites. The Company owns and manages approximately 38 commercial properties in various southern Ontario communities. Its properties are single store sites with a few multi-store plazas, including one residential unit above a retail commercial store. The Company has leased to third parties 51 retail units, 36 of which were leased to Mac’s Convenience Stores Inc. operating under their Mac’s Convenience Stores brand (two stores) or their Circle K Stores brand (34 stores). The remaining 15 retail units and one residential unit were leased to other tenants.


TSX:BEK.B - Post by User

Bullboard Posts
Post by fatcharlieon Jul 13, 2018 8:22pm
99 Views
Post# 28315292

Managers Discussion on Sedar

Managers Discussion on SedarJus my two cents it appears we have a very large cash & short-term investment balance for a small company as it stands now.  Nine properties sold in 2018 for $3.1M. Additionally, we also have long term investments -mostly Couche shares and GICs.  Just makes you wonder what are the long term plans here of management? Current fair value of remaining properties is $32M.

Bottom line Becker is grossly undervalued at current prices and appears to be trading below 50% of NAV.  Management doesn't help by keeping such a large cash position and not declaring a special dividend which would raise the SP or actively seeking another buyer.  I will continue to add to my positions with the dips going forward.

As at April 30, 2018, the Company had a cash and cash equivalent balance of $718,105 (2016 - $762,595) and a liquid short-term investments balance of $4,634,511 (2016 - $1,615,605) to settle current liabilities of $688,140 (2016 - $531,952).

In fiscal 2018, nine (2017 – two) properties were disposed for proceeds of $3,155,759 (2017 - $1,010,000) less disposal costs of $131,597 (2017 - $37,038). A loss on disposal of $31,840 (2017 – $5,038), representing the difference between the properties carrying values in the investment portfolio and net disposal proceeds, was recorded. All sale proceeds were received in full.


Bullboard Posts