Parent Capital Corp V.PAR.UN

RE:RE:Good news. Insiders received 3825 shares; no one sold any

[wheeloffortune]

There's still a good profit if we get a $1+ special divy to reflect a reduced SP from a corresponding divy reduction.  If the SP falls to $1 with a 9%divy at $1 and a $1+ special divy, that's better, isn't it?  There's 46m shares and the $197M Quebec sale will net $65m.  So, we're talking over a buck a share special divy to reflect a $50% reduction in SP.   It's trading at 0.53 p/bv at $2.03--so there's a lot of hidden value tucked away. 

57% of the shares are owned by insiders plus another 16% are owned by companies related to insiders and they all bought in at over $3/share (with no insider selling in the past year) so they probably expect to get their money back and they have a majority vote.  And there's no hedge funds owning shares here btw.

So if they get paid out on shares they bought at $3+, there's going to be big profits for those who bought in at today's bargain prices of $2.03 at 0.53p/bv.  I see a juicy return on investment because those 72% of the shares are owned by insiders and their private companies and they want their money back and they're going to have to go through the rest of us bargain hunters to do it--meaning BIG PROFITS for those who get in at TODAY's prices. 

YellowBrickRoad wrote:

wheeloffortune wrote: They must be expecting the SP to go up--can't do that with a divy cut:

A previous PR states that if the Quebec sale goes through the div will be reduced or eliminated and they will simply liquidate or sell the REIT which means only special dividends from that point.

March 11 - The purchaser has waived  its due diligence condition, but completion of  the Quebec Sale Transaction remains subject to receipt of certain lender approvals and to a number of closing conditions.

Jan 2 - In the event that the Quebec Sale Transaction is completed, the Board expects to consider the payment of a special cash distribution to all unitholders of a portion of the net cash proceeds from the sale of the Quebec properties.  The Board will determine the amount of that special cash distribution in due course based upon, among other things, the ongoing cash requirements of the REIT.

 

In  the event  that  the Quebec Sale Transaction  is completed,  the Board also expects  it will  review  the appropriateness  of  Partners’  current  normal  monthly  distribution  of  $0.015  per  unit  ($0.18  per  unit annually), including whether such distribution should be reduced or discontinued in light of the smaller size of the remaining portfolio and other relevant factors.