Clarke Inc T.CKI

Alternate Symbol(s): CLKFF

Financial Services Asset Management

Clarke Inc. is a Canada-based investment and real estate company with holdings in a diversified group of businesses and across real estate sectors. The Company is focused on evaluating the acquisition, retention and disposition of its holdings. The Company operates through two segments: investment and hospitality. The investment segment represents the Company's ferry business, investment properties and real estate inventory under development. The hospitality segment consists of its ownership and operation of hotels. It has a diverse portfolio of direct real estate holdings across the hospitality, commercial, industrial and residential sectors.

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Clarke Inc

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Post by Possibleidiot01on Jul 20, 2024 4:50pm

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Post# 36141374

Trevor Rose's Insights - Don't Buy

DON'T BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The stock has really jumped over the last month and the most recent news we see is relating to CKI renewing its NCIB (share buyback plan). CKI plans to buyback 5% of outstanding shares over the next year. Results vary significantly period-to-period making it harder to anlyze and give a clear answer if we are seeing a long-term trend of fundementals improving. The balance sheet has quite a bit of debt at $137.8M in net debt. On a trailing earnings basis, CKI is very expensive at 44.2x. While the recent performance has been strong, we do not like the lumpiness in results and the size risk at $327M in market cap. We think investors could look elsewhere for a small cap TFSA investment. It is essentially a holding company and two shareholders own 88% of the company. With no dividend, we would prefer to see secular growth and better liquidity.
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