TSX:AX.PR.E - Post by User
Post by
SNAKEYBOYon Aug 18, 2023 8:14pm
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Post# 35595852
Its just math
Its just mathLets say you own a duplex worth $10, and have 10 investors with $1/share each.
The investors are getting nervous and trading shares for 0.50.
The owner of the duplex has the left unit ($5) a bit old, may be slow to find a buyer, so sells it for half off- $2.50.
He takes the $2.50 and buys back 5 shares for 0.50.
Now there is one nice unit shiny right unit still worth $5, and 5 shares. Shares are worth $1/each as before.
The moral of this story: Whatever Artis sells at a discount, can be recouped by buying back shares in a SIB. So those who said in a fire sale we can realize $10/share, sure do the fire sale, use it for a SIB every year, and you can move the value per share back to $16.