OTCPK:HBAYF - Post by User
Comment by
bluejay100on Sep 11, 2018 9:42am
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Post# 28596472
RE:HBC announces merger of European assets.
RE:HBC announces merger of European assets.I guess we shouldn't be surprised as the rumours, which got more and more plausible, didn't significantly shift the stock price. However, it is a damning indictment of management.
I suspect that many investors see this transaction as not much more than financial engineering, and doesn't deliver much in the way of cold, hard cash (less than I was expecting actually). At the end of the day, HBC is still knee-deep in a retail business which is struggling. I don't like the 50% retail ownership of the enlarged entity for that reason. I would have preferred them to keep a JV real estate stake, if they were going to keep any interest in Germany at all.
It just shows that management are not aligned with their shareholders. It puts people like me in a real predicament. I was hoping a German deal would pop the SP by $5-6 and I could get out of the stock. Now I am not sure what to do - I cannot see a catalyst for a share price increase of any size on the horizon. It's no good management saying this deal shows assets are worth $8 a share, when I want the tangible value NOW!