DRI Healthcare Trust T.DHT.UN

New long

[SONOFFERGUS]

Hi DRI people.

I haven't been following this stock but dipped my toe in on the selloff.  I've had success buying the overreaction to accounting or executive shenanigans that I assume are unlikely to impair the business in the long run.  IMHO a 25+% haircut is excessive.

Can anyone provide info on my assumption?  Does the CEO matter much to this business?  Is he a guy you would happily trade for a newer model?

I have done a little work on the financials and note lots of deferred compensation that I expect the CEO (and CFO, is he turns out to be part of the fraud) will end up forfeiting.  So the fund is +$7.5mm-ish of reimbursed expenses, its prior-period earnings were understated by that amount, and perhaps a very large dilutive position may have gone poof.  Obviously there is much grief ahead but perhaps the trust will end up in a better position.

[retiredcf]

Your toe dipping is likely a good move. Here are a few observations.  1. I'm showing 7 investment firms that provide coverage so over the next week, we will see what sort of adjustments they make to their targets. They are RBC and CIBC ($20), Stifel ($22) and Raymond James, National Bank and Scotiabank ($24); 2. Upcoming earnings (which have been indicated as being unaffected) are

[mjh9413]

From FP: The management shake-up prompted a downgrade from Stifel Financial, which cut its rating to hold from buy, citing limited upside for the company as the investigation continues Bank of Canada analyst Zachary Evershed said his team wasn’t “overly concerned” about the financial impact of these irregularities because they’re relatively small and will be reimbursed by the external