SSC Security Services Corp Ordinary Shares V.INP

Strategic alternatives update

[bargainhunts]

So the earnings statement is out - a stealth release that management gave us no notice about. But earnings are irrelevant right now. The big news is the strategic alternatives update - "The Board has concluded that options for cost effective scalable funding of the company's mortgage stream business are not competitively available in the marketplace at this time."

Not good! Management is in a real jam here. Nobody is willing to fund them, I assume because most of the banks they are seeking to deal with are either direct competitors in farmland mortgages (or their major shareholders are). At the same time the idiotic trade war has killed soybean and canola prices. So they are going to batten down the hatches and just try to buy back as many shares as they can, potentially doing a Substantial Issuer Bid to shrink the share count in a much bigger way than the regular normal course issuer bid would allow. I actually think this is a sensible decision given the bad hand management has been dealt (and notwithstanding some of their missteps in the past). But who knows what the share price will do.