Becker Milk Co Ltd T.BEK.B

bek.b

[DemDem]

Bad news it seems to me:  The non-GAAP financial measure net operating income for the six months ended Oct. 31, 2022, was $1,153,009, a $58,920 decrease compared with the previous year as a result of reduced revenue for the quarter. Property disposals and the impact of settlement of rent negotiations with the company's largest tenant were the principal reasons for the revenue reduction.

[Lawyerup]

Becker expects the amount oweing to be paid in early 2023 for Mac Stores.  Reduced revenue is also from sale of properties.  Becker is still sitting on a large cash position, over 32,000 ATD shares and various bank notes all positive.  Its still not bad maybe some weak hands will sell over the next few days so I can add.  Cheers Charlie.

[Oneinamillion]

Hi Charlie and other long term investors...any comments on where you see Becker going from here?  Just more asset sales to keep up the cash flow and dividends? Or a sale to some reit or retail chain? My own guess is that they will need to sell fairly soon as they can't just keep selling off bits and pieces for ever....and the directors are no spring chickens....which is putting it mildly

[BarstoolSage]

1.808 million shares out....bunch held by insiders whose average age is subject to a succession plan I am sure and I expect it is something directors feel needs not to be disclosed as of current material interest to shareholders We can assume they are rational and have mechanisms to pass their shares to their heirs  trading .72 price to book (18.82) and about 10 X revenues ps ROA, E and I

[Oneinamillion]

Thank you very much, Sage. Yes, they must have a succession plan...only logical. And yes the 6% payout is very attractive...esp as the risk seems low given that they are trading below NAV as you point out. All imho. Cheers, O

[BarstoolSage]

If you like these kinds of undervalued dividend payers, check out Alberta casino operator Gamehost   GH   monthly dividends, currently yielding about 4.5%, paying monthly...but dividend was halved when COVID struck and earnings coming back...trades under pre covid levels and good valuation metrics. 

[Oneinamillion]

Thanks for the tip! I don't like to invest in gambling stocks, however, as I know what a terrible scourge gambling is for those who can't control their habit. That's just my own pov...I am not the type to tell others what they should or shouldn't buy...not a holier-than-thou type. A chacun son gout!

[BarstoolSage]

It's a jurisdictional thing in Canada. I think Ontario is overboard now with options and apps and there is a Superbowl promotion for Ontario residents with win\lose bet on whether The Gronk will score a field goal. Hockey too is inundated here with commercials and paid HNIC segments which I guess can be isolated by province by cable systems...dunno.  And no judgement made. We all invest

[Oneinamillion]

Beaker of Becker....make mine a double! Very interesting comment by a guy named Dave on the Yahoo finance bullboard for Becker's. He wonders if PKI could be sniffing around as they are interested in buying store/gas station locations for the new EV market. Makes sense and could explain the recent burst in share purchase activity for the normally moribund BEK.  Thanks for the explanation

[Lawyerup]

Yeah hard to say if true or not.  We might get more information when the next financials are released.

[Lawyerup]

Maybe a sale in 2023 or maybe not.  Nobody really knows except maybe the insiders.  I have been looking at PKI lately and it would be a cheap takeover for Parkland to take Becker out.  Parkland owns M & M frozen foods and also is moving into more takeout foods at their retail gas outlets along with putting in charging stations for EVs.  They are also looking at agressively

[Oneinamillion]

Thanks very much Charlie! Always interesting to get your perspective on things. All the best! O