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Dorel Industries Ord Shs Class A T.DII.A

Alternate Symbol(s):  DIIBF | T.DII.B

Dorel Industries Inc is a Canadian company that sells juvenile products and furniture. Its segments include Dorel Home and Dorel Juvenile. Dorel Home segment is engaged in the design, sourcing, manufacturing, and distribution of ready-to-assemble furniture and home furnishings which include metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. Dorel Juvenile segment is engaged in the design, sourcing, manufacturing, distribution, and retail of children's accessories which include infant car seats, strollers, high chairs, and infant health and safety aids. Its geographical segments include Canada, the United States, Europe, Latin America, Asia, and Other countries.


TSX:DII.A - Post by User

Post by subliminal23on Dec 27, 2020 9:29am
234 Views
Post# 32185000

Stop the privatization

Stop the privatization
There seams to be a misconception with this privatization deal with Cerebus Capital. Cerebus is not acquiring the stock they are financing the equity. Essentially the company is taking a loan against you equity to buy your shares. Then when the loan is repaid the board will own %100 of the shares. It is in the boards best interest for the valuation of the equity to be as low as possible to ensure the smallest loan that has to be repaid. Steps were taken prior to negatively effect the the valuation of the company. These steps included liquidating inventory at a discount, depreciating assets, depreciating goodwill, and restructuring. All of the these thing will decrease the valuation the company. It is no coincidence that this stock has gone from $40/share to $1/share in the 4 years preceeding the privatization deal. This is by design. If Covid never happened the robbery would be worse! Not only do I recommend to not sell but to also buy more stock. There is not any opportunities out there as good as this one. There is no guarantee in investing but in my opinion this company as least double the current valuation. If the board fails at the privatization of the company that is a win for minority shareholders. I believe the stock will jump because this has become more apparent now that the privatization has come to light. We just had our best quarter ever and it is trading at a third of the price it was in 2016! The play here is to buy/hold.
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