Even Higher Cumulative US Duties on HandSorry, I was using the cumulative duties on deposit as of the end of Q1-2022.
At the end of Q2-2022, the cumulative duties on deposit was $849.6mm (CAD).
So by my calculation, the fair price using a conservative $400 USD per thousand board feet and taking into account the net cash of $1.267mm and a 50% estimated recovery of US duties ($424mm) = net cash of $13.81 per share, the fair price per share is
= $42.24 (a 73% premium).
Jimmy's offer should be over $40 if he want to take the company private.
Pattison doesn't need to rely on the public markets for financing. Going private would be advantageous (way less reporting requirements, secrecy, way less to disclose, cost savings). Jimmy doesn't prefer a public company. If you're a billionarie, it's only better when you go to sell and cash out.
This stock would be trading at a higher level if it wasn't for the Don Kayne market discount.