Andrew Peller Ltd T.ADW.A

Mixed Messages

[Yohhhh]

Unfortunately, I've been burnt by this one. Share Price keeps on going down, Financial results keep on underperforming although not to the extent of what the share price might indicate. I just listened on the investor call and everything seems positive but when you look at the financial results, it isn't. Volume must be on the decline as prices have risen and revenue has stayed the same. I wish the financial results had greater detail on expenses and revenue sources. Expenses keep on going up yet management says they're implementing numerous cost saving initiatives and some inflation costs have been going down. That being said, those expenses are tied to inventory that was produced during those high periods so we will see in the next few quarters if what management says is true. Overall, with the price being as low as it is (management says their book value without brand is ~2x their share price) and the monetization of port moody (maybe 50-100 M), this does seem undervalue. Funny thing I noticed on the investor call, almost no questions especially after a weak quarter. My thinking is institutions have already pulled their money out.

[Stonksonlyup90]

They need to get their bloated inventory under control, bring inventory down $30-$40M and you have an instant reduction in debt and associated interest. Agreed, a sale of Port Moody land would surface some substantial value for shareholders (which could then be applied to debt). Lots of levers for the company to pull, but they've been dragging their feet. If the share price is so

[Tapcet]

Few questions about the results because everyone has given up on management. They need a new CEO.

[TheCount11]

Mixed Messages are what makes investing hard.  I own stock as well and listened to the CC.   I actually think the stock price is holding up quite well at $4 and the financial statements don't reflect how bad the business is right now.  What would the results have been without the government wine support? As you have all pointed out its a question of cost control. 

[johnathamilton]

I listened to the call as well. As a human being I felt for the CEO - it clearly sounded like he was nervous in the call. I have no idea what is going on behind the scenes in this company, the but turnover in the executive suite over the past few years is troubling. I don't want to be piling on, but time is of the essence to resolve the business problems and I don't get a warm and cozy

[Yohhhh]

Yup, thats why it would be great to ese the revenue and expense breakdown to see just how bad the situation is. All we see is the rhetoric that they're doing a great job at managing a difficult situation but the financial statements show revenues that are flat and growing expenses.