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Algoma Central Corp T.ALC

Alternate Symbol(s):  AGMJF

Algoma Central Corporation is a Canada-based marine shipping company. The Company owns and operates a fleet of dry and liquid bulk carriers’, serving markets throughout the Great Lakes St. Lawrence Seaway and internationally. Its Domestic Dry-Bulk segment includes the Company’s 18 Canadian dry-bulk carriers. This segment serves industrial sectors, including iron and steel producers, aggregate producers, cement and building material producers, salt producers and agricultural product distributors. The Product Tankers segment fleet consist of seven product tankers employed in Canadian flag service and one international tanker operating in Canada. Its Ocean Self-Unloaders segment consists of eight ocean-going self-unloading vessels and a 25% interest in a ninth selfunloader. Its Global Short Sea Shipping segment, which consists of the Company's NovaAlgoma joint ventures, focuses on niche marine transportation markets featuring specialized equipment or services.


TSX:ALC - Post by User

Bullboard Posts
Comment by Matlockon May 06, 2019 9:29am
185 Views
Post# 29714118

RE:RE:RE:RE:Special dividend

RE:RE:RE:RE:Special dividendI agree with you that it's difficult to establish a significant position in Algoma, although you've got some underlying facts wrong....

This stock is already very, very illiquid, pre-NCIB.... average daily trading volume is just ~3800 shares (on a float of ~38 million shares, this is just 0.01% traded daily).  The NCIB is unlikely to impact this considerably.  Furthermore, the NCIB limits Algoma to buying 25% of the average daily trading volume each day... at current average daily volumes, a whopping 1000 shares.  Over the full year, at most, they could buy back 252,000 shares, or about 0.6% of the float.

Talking myself through this post, I wonder if perhaps the special dividend is in recognition of the fact they are quite limited in their ability to repurchase shares, given the low trading volumes and NCIB rules.
Bullboard Posts