Should dual class shares be eliminated?Many Canadian companies have dual class shares. Many of those companies make decisions that benefit one class over another. Many of those companies have long stretches of poor performance and depressed stock prices.
The following is a snapshot comparing 2012 to 2024 for Peller.
| | 2012 | | Q2 2024 | | change | Long Term Performance |
| | | per share | | per share | | |
| Share Count | 14297870 | | 43244723 | | 302% | share dilution of 300%? |
| Long Term Debt | 41456000 | 2.9 | 206294000 | 4.8 | 165% | LTD up by a staggering 500%!!!! |
| Equity | 120552000 | 8.4 | 254156000 | 5.9 | 70% | Equity per share down 30%! |
Over the last 12 years the number of shares has ballooned by 300% while long term debt is up by 500%. Long term debt PER SHARE has grown by 165% while Equity PER SHARE has decreased by 30%!
Was the Board of Directors giving the Peller family $9.5 million dollars after destroying equity and increasing debt per share over last 12 years negligent?
I try not to make long term predictions because they are always wrong but 2027 will likely be a terrible year for the company as wine sales are liberalized. Canadian Grocery stores are pretty unique in they are concentrated, vertically intergrated and take huge fees (slotting, core, ad, etc).