RE:RE:RE:RE:RE:Redemption of 7.0% Convertible Unsecured Subordinated DebsUnknown123 wrote: Is it possible that they are positioning themselves as a clean acquisition target? I mean the market cap is peanuts now - sheesh! I sure hope not...IBG has so much intrinsic potential. I really don't know why the stock has been deteriorating...
My guess as to the deterioration: Overall growth has stalled. Canadian ops have been carrying them but I think there's a general fear that we're very late in the cycle, with plenty of risk from economic shocks due to our capricious southern neighbour. On top of this, they are in the midst of a pivot into new business. Could be great if it goes as they hope/expect, but there's always execution risk and the market is impatient. A dividend reinstatement appears to be pushed well out of the near-term. This management team is not promotional. I like it that way, but often the market doesn't. One of the brokerages has also lowered its PT to $6.50, which could have precipitated some exits from those focused on growth. There's still so little volume here that any exit pushes it down hard. It broke $5 today, and sometimes this leads to a little vicious cycle. We may get some silly bargain prices in the next couple months.
On a related note, I see Dale Richmond selling around these levels, and the partnership hasn't been eating up shares. I find that surprising though I'm not alarmed.
On the positive side, it sounds like we should expect substantial improvement in the US ops in the 2nd half, even if not EBITDA positive. Steady as she goes. I'll be adding again soon, I think.