Quinsam Capital Corp C.QCA

Comparative Story.

[mercedesman]

A poster on here (Rock Lobster?) pointed me in the direction of another undervalued Holdiing Co. with a symbol ELC.   (note: this is not a recommendation for this Co. as an investment).Given that it was a gold investment banker/holding co. , it was more up my alley, so I checked it out. (note: ELC was and is to Gold equities as QCA was is to Cannabis).

At the time the stock was trading at .44 - .48 with a NAV/sh of over .60.  So being an investor that is attracted to value, I did a bit of DD and I bought some in the mid to high forties. 

Anyone folowng gold knows that the price has generally been falling from Aug 2020 until about April. Nevertheless the Company was able to: push up earnings especially before the fall, pay a dividend, and educate shareholders as to their portfolio.. 

Recently they reported NAV/sh of around .68 and eeked out a small income on the latest Qtr. They also paid investors a special dividend based on 2020 performance. I exited the last of my ELC positions in the range of ..72 to .74.  Why?  Because they were finally trading at a much deserved premium to the NAV/sh.   They likely will continue to command a premium, but again this is not a commercial for ELC.

It's simply a comparative story to QCA, just with a different industry focus, and a different experrience for the average investor.  It should be noted that in a down market for gold, ELC was able to close the discount (SP to NAV/sh) and trade at a premium. Qca, in an up market for Cannabis, has not closed the discount at all.

We pay for a good manager to (1) beat the market sector (more often than not), (2) to get access to ground floor opportunities that hopefully will eventually pay off, and(3)  to diversify our risk (across mulltiple co's within a sector, different countries ,etc).  In other words, a good stewart of the assets, commands a premium and many investors will and should pay for that.  What are we to make of a discount that is not a short term anomoly (which of course can happen from time to time in an imperfect market)?   

Luckily ELC rectified the discrepancy and I was able to benefit as a shreholder.   Not so here...so far at least.

MM

[Iseevalue]

I feel this could be posted weekly. Also a reminder to deep value investors that these things take time, and those searching for deep value may find things long before the market. At least we have no debt on the books so that is very positive for hedging our bets.

[theinvestor22]

"...a good stewart of the assets, commands a premium..." This is exactly my point.  For an invesment firm, first, make the story compelling in terms of results (and continuing potential).  Once that happens, you're away to the races. Since Roger has invested in a number of early stage companies, they'll take time to develop. In terms of being unloved, Peter Lynch

[mercedesman]

"This is exactly my point.  For an invesment firm, first, make the story compelling in terms of results (and continuing potential).  Once that happens, you're away to the races. Since Roger has invested in a number of early stage companies, they'll take time to develop. In terms of being unloved, Peter Lynch once said that he would often buy deep value companies for his

[mercedesman]

An update on a company that shows us how it should work for a small investment and venture capital Company focused on a particular sector (in thier case natural resources) It is now trading (.78) at a premiun to last reported NAV/sh (.71) - which is being provided between Qtrs. Their Q1 was March 31, but apparently they like to keep their shareholders informed between Qtrs...in a NR dated 

[noremac50]

It's amazing how Quinsam found another 1.5M+ shares to buy for the buyback at .19.

[mercedesman]

...and the 1M+ shares for our Cormark friends. But actually last year's NCIB isn't quited finished.  I only see 750k (or about 1/2 of the remainder, having been purchased/redeemed. Even so, one would have thought, with all this ST demand, we might have found a new Equilibrium? Where there is a will, there is a way, I guess. Maybe we need to polish off the '20/21 NCIB and a few

[noremac50]

Looks like Roger swapped 1M+ shares with his wife. Filed 2021-06-07 15:48   Tx date 2021-06-03 $QCA Quinsam Capital Corporation Dent, Roger 4 - Director of Issuer, 5 - Senior Officer of Issuer Direct Ownership Common Shares 10 - Acquisition or disposition in the public market $218

[mercedesman]

Yes  Saw that And another 750,000 shares were bought for cancellation June 7th Should pretty much complete last years NCIB MM

[Iseevalue]

They should take a lump sum of one million and do a tendered bid for their own shares. If they're gunna be trading at this much of a discount, interest rate crash looming... maybe buying our own shares are the best investment for shareholder value.