TSX:SOT.DB - Post by User
Comment by
Malpeque2on Oct 21, 2022 10:04am
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Post# 35038595
RE:SOT Haters
RE:SOT HatersSnakeboy. They are low, but all 3 are or were engaged in the property strategy and allocation of Capital. At these discounted prices to FMV, or NAV, which is supposed to be a close approximation
to IFRS stated book value, they were selling assets to pay down debt and Buyback shares.
BUT, Dream Office is controlled by Dream Inc. and Cooper. Artis is controlled by Sandspring and the New Guy. H&R is controlled by nobody. That one is a loose fish. H&R is significantly larger, so perhaps George A. thought SOT was a better size to take a stake in and effect change.
Also, it appears H&R is doing this at a descent clip, selling assets and buying back. SOT had the asset sale, but turns around and dilutes us at $5.50 with a NAV and Fair value much higher. Anyone who doesn't see the future dilution from issuing a convert at $5.50 is not understanding what is going on here. The 3 brokers of the deal are going to sell this to institutional investors who if or when they do convert someday are going to be much more beholden to SOT and SLAM because they were given this token small gift of Converts at well below any reasonable estimate of takeout or liquidation value. I had it at worst case $6 on a sale or liquidation.
Dream Office and Artis both seem to be in a bit of a pickle and have slowed the buybacks of their own paper. Meanwhile Artis loaded up on Dream Office shares, not sure why, unless Artis knows Cooper is going to blow out Office and then they can hopefully all profit a bit on the sale.
Worse for SOT shareholders is that the company probably would have had a descent profit and cash after the Tronto office building sale and mortgage paydown, and could have used the proceeds to pay down debt and agressive buyback stock under the already authorized NCIB. SOT has given lip service to creating shareholder value and the NCIB. So buying this Chicago property is just more of the same old same old from this managment and BOD. You all know this BOD owns very few shares except the Welch Bros, who collect the manamgnent fees thru their ownership of SLAM. Slate Asset Managment.
George A has to do what he is doing and get these people GONE!! ASAP! IF you own 14% and have no "FEE" arrangment like SLAM, and they still screw around like this........VOTE THESE PEOPLE OUT!!