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E-L Financial Corp Ltd T.ELF

Alternate Symbol(s):  ELFIF | T.ELF.PR.F | T.ELF.PR.G | T.ELF.PR.H

E-L Financial Corporation Limited is a Canada-based investment and insurance holding company. The Company operates through two segments: E-L Corporate and Empire Life. E-L Corporate segment represents investments in stocks and fixed income securities held directly and indirectly through pooled funds, closed-end investment companies and other investment companies. The investment strategy is to accumulate shareholder value through long-term capital appreciation and dividend and interest income from its investments. Empire Life segment offers individual and group life and health insurance, investment and retirement products to Canadians. The segment provides a range of life insurance and wealth management products, employee benefit plans and financial services to meet the needs of individuals, professionals and businesses through a network of Independent Financial Advisors (IFA), Managing General Agents (MGA), National Account firms and Group Solutions brokers and representatives.


TSX:ELF - Post by User

Comment by chuck84on May 29, 2021 8:22am
217 Views
Post# 33292152

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:ELF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:ELFas always, and i give you complete credit for it, you do deeper analysis than anyone in this name. in this case going so far as to dig up that link. i didn't bother as the knowledge a dealer provided liquidity opinion was sufficient for me.

that said from what i can gather about the rules you provided make it seem even harder to get SIBs thru for ELF.

the purpose of the SIB is to get a large block WITHOUT having to get a valuation opinion as is required for mergers/takeovers etc. clearly ELF wants to avoid that as it would likely come in above $2000 (no avoiding reciprocal shares as the minute you plug in IFRS NAV, it forces conversion to the GAAP method)

a SIB requires a liquid market. section 1.2 tells us that ELF fail that test miserably on almost every count. so then the always present loophole's kick in and in this case that is an "opinion" by a well greased banker with no established parameters to speak of. 

i by no means rule out them being successful getting another opinion but ELF's true float is shrinking very rapidly and there comes a point where no opinion would pass the OSC regardless of the pedigree of the dealer being bribed to write one.

i understand your logic that these tests shouldn't even exist, but they do and for good reason. 

hypothetically you suggest that post another SIB, liquidity can be guaranteed by way of an NCIB. well how exactly is that policed? NCIB's don't force the company to do anything. ELF bought 100 shares since the NCIB was renewed 2 months ago - is that providing liquidity? are they obligated to bid daily in open market at a set discount based on an establised formula for NAV or a minimum price? what's to stop NAV exploding as it did from 2014-2020 while stock went nowhere and discount exploded to unimaginable levels?

i take comfort that there are rules and regulations in society. A lot of effort goes into establishing them and in THEORY they are there to protect us. That they get circumvented time and again is generally not with the public good in mind.




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