Andrew Peller Ltd T.ADW.A

Valuation

[Stonksonlyup90]

According to Morningstar - ADW.a over a 5 year period has traded at an average of 2.1x Price/Book.. currently the stock is trading at a P/B of 0.86x. 

In the short term the market can be very inefficient and this is providing exceptional opportunity over a several year time frame. 

In my opinion there is no way that the Net Assets of ADW are impaired below Book Value.. certainly there could be a minor write down of inventory, but I'm not antipicating one. Given that the companies PP&E was organically funded/purchased a long time ago, I would in fact argue that the value of these assets is materially higher than presented on the Balance Sheet.

Recent weakness could be attributed to the mandatory sale of shares as a result of a Peller family member estate wind-up.

I feel VERY comfortable adding here. Dividends are covered by earnings/cash flow. This company isn't going anywhere!!

[johnathamilton]

Thanks for sharing those insights. I'm confused by the insider selling and the comments about a Peller family member estate wind-up. I know that a member of the Peller family who resided in Hamilton passed away recently and this may explain some of the sales. But the sales are widespread throughout the family so not sure how to fit those sales into the picture.