Another positive qI'm still going through the q, and Tyler from the Value Stock blog did a write up yesterday
He had a concern regarding the Rona property being bought for 94 million.
The real estate division has daily rev of just over 20,000.
Creating an annual amount of over 7 million.
Pretty sure the cap rate is over 7.7 percent. They have no other cash flow sources right now in the division.
I view this as another valuable asset to add to the 208 million of securities. Plus the 85 million pension surplus.
This sum is just under 12 a share.
I think he is off with his real estate values a touch. There are significant gains every time a store is vended.
As an example Brossard was 40k feet, sold for 6.5 mil
162 a foot.
The Trois River store was sold at a big gain at 90 a foot. This community is very small at 143k population.
The urban real estate in Montreal and Quebec City is going
to be worth 180 to 200.
The company is treading water operating is a recession.
I still think there would be huge cost synergy to merge with Leon's.