Dundee Corp T.DC.A

Is Dundee Corp going PRIVATE?

[pierrelebel]

What is DUNDEE 2.0?

At the recent shareholders meeting, Jonathan Goodman:

"We welcome Steven to our leadership team in his new role of Executive Vice Chair,” commented Mr. Goodman. “We believe that with his skillset, expertise, and senior leadership experience, Steven is perfectly suited to execute on one of our key strategic objectives, namely, rationalizing our portfolio of legacy assets.”

Steven Sharpe’s extensive senior leadership and public company experience span a wide range of industries and responsibilities, from legal practice to corporate strategy and restructuring to investment banking to C-suite leadership.

“With [Steven] leading this initiative,” he added, “Dundee’s efforts in this regard will clearly accelerate, and we can sharpen our focus on building Dundee 2.0 as an active investor in the mining sector.”

It makes a lot more sense to achieve Dundee 2.0 goals as a private company than a public company, required to provide quarterly reports using accounting rules that do not favour holding companies.

Last year Dundee Corp raised huge amounts of money by selling DPM. More money was raised this year with the proceeds of the DPM warrants.

Some of that money was used to buy back common shares buying back "weak hands" ($1.40) and preferred shares, reducing future dividend payments and increasing common share equity since preferred shares were purchased below "book value" ($25).

All in all, I see controlling shareholders (Goodman and associates) eliminating minority shareholders over time.  I expect more common share buyback to be announced soon.

Unfortunately, long time shareholders may never get the opportunity to recoup their original investment if their shares were purchased more than three years ago ($3+).

[tsoprano24]

Interesting perspective. Not sure of Canadian laws but in US a company has to give shareholders at least book value when going private. We are trading at about 45-50% of book, I'm guessing. So we would be looking at a double from here. Nice. And I would probably take it, but some of our investments may prove much better than a double. They would be smart to continue buying back stock at these

[heystupid]

This post has been removed in accordance with Community Policy

[tsoprano24]

Wlcome Stupid One. My little puppy from the btr board. Posters here are in for a treat. The Stupid One is mad that I expose his lies. Since the days of Metanor and onto the merger with Bonterra, this poor sap has been lying about gold ounces, production and the mill over there. I expose these lies and he gets mad, calls me names and makes up stories about me and anyone else telling the truth about

[Catscratch]

I'm surprised board isn't moving faster on the subordinated voting share buybacks.  Cash plus public company investments less preferred shares is worth more than their current market cap (so you get all the private investments for free).  It would be very opportunistic to privatize at this stage/price. Look what happened with Torstar when investors didn't appropriate value

[Catscratch]

It would be highly unlikely that they have higher ROI opporunities than buying back their own stock at the current price.  I simply do not understand why they would sit on a mountain of cash and/or allocate capital to new investments vs. increasing DC.A shareholders' concentration in their existing assets through DC.A buybacks (at less than 50% of book value).

[pierrelebel]

Catscratch wrote "It would be highly unlikely that they have higher ROI opporunities than buying back their own stock at the current price...." I agree but it does not have to be at "current price" A substantial purchase of common shares at $2.00 to $2.40 would attract tens of millions of shares and still represent a huge discount from "book value" for remaining

[Catscratch]

Any DC.A purchase well below book value is money well spent in my opinion. I would not purchase the preferreds at current prices.  Their yields aren't great as is and will get worse when the dividends reset to lower rates in the future.  In my opinion the company's excess cash should be prioritized as follows: 1) DC.A share repurchases (SIB and/or NCIB) at share prices up 25