Divestiture of Geranium InterestsUndervalue. Are we still in the Highland Gate disaster JV with Geranium? I assume so.
You know we pay them a quarterly managment fee which is quite large for the privledge of breaking even on a land development deal in Toronto suburbs where our cost basis in the land going all the way back to the purchase out of bankruptcy auction (was it) is near zero.
IMO any reasonable audit of the activity, or lack therof, at HG would most likely find white collar criminal payments to "dummie" corporations for "materials" or "labor" on this project.
UNless you want to assume Rai and Tamlin are the village idiots and did not know whom they were getting in bed with. When you land cost is near zero from decades ago, and you develop the land for residential, or whatever, your gross margin on sales should be at least 25% and closer to 30% before SG&A. HG is so far off it's a laugh. Except for the minority shareholders!