Clarke Inc T.CKI

Alternate Symbol(s): CLKFF

Financial Services Asset Management

Clarke Inc. is a Canada-based investment and real estate company with holdings in a diversified group of businesses and across real estate sectors. The Company is focused on evaluating the acquisition, retention and disposition of its holdings. The Company operates through two segments: investment and hospitality. The investment segment represents the Company's ferry business, investment properties and real estate inventory under development. The hospitality segment consists of its ownership and operation of hotels. It has a diverse portfolio of direct real estate holdings across the hospitality, commercial, industrial and residential sectors.

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Clarke Inc > Price to book

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Comment by SusanBollandon Jan 04, 2022 8:39am

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Post# 34280973

RE:Price to book

Torontojay wrote:
Historically Clarke has always traded at around a price to book ratio of 0.85. Today, you can purchase shares at about 0.66 times book value. If it gets back to its historical average we should be at $ 11.46.

Since 2002, the company has increased its book value per share + cumulative dividend growth of 12.3% per year. Book value per share has increased by 9.3% per year. If the company can continue to grow its book value per share at 9.3% for the next 5 years then I can conclude the following;

1) I may earn 9.3% on my money excluding dividends and about 12.3% on my money including dividends if the company maintains a price to book value of 0.66.

2) I will double my money excluding any future dividends if the company can continue to grow its book value by 9.3% per year and trade at a price to book value of 0.85.

Not a bad deal. In a worse case scenario I will likely earn double digits on my investment. In a best case scenario I should at least double my money in 5 years excluding any future dividends.