Kanetix bought by Ontario Teachers' Pension PlanHi guys,
I just want to share with you the following news:
https://www.pehub.com/canada/2018/09/ontario-teachers-to-acquire-digital-insurance-shopper-kanetix/#
Torstar has a 12.6 % stake which is valued at 5 million in its balance sheet (Kanetix was valued at 40 million in 2012). Based on my research I expect higher proceeds than 5 million - perhaps up to 10 million for this non-core investment.
And the Blue Ant stake is certainly worth more than 50 million atm. Torstar got nearly 30 million dollars in favourable tax credit rulings over the past 12 months, which will be converted to cash over the next several quarters. It can be seen in a working capital position of 90 million at the end of the last quarter. On the negative side there is a questionable transformation initiative and unfavourable developments at Verticalscope, but I think the VS stake still has considerable value, even if I have to reduce my more optimistic valuations of it. Let's see how VS performs over the next twelve months.
Keep the faith, guys. Perhaps one day our Jesus (looking like Prem Watsa) comes just around the corner:-) The valuation with a market cap of 100 million is incredible and brings a giant margin of savety at this level.
Regards,
Don