Genesis Land Development Corp T.GDC

DanGood38

[Malpeque2]

Thanks for that info.     This GDC has terrible ROE in a fairly decent home market of late  in Calgary.        The land sales and margins are o.k.    but the home margins are pretty poor,   after G&A and marketing expenses.     Why put more money into this business thru the rights offering?

The company is sitting on a TON of land already.   In fact it's a pretty large asset overall for GDC.

Would not the rational owner just continue to sell land and homes and put this asset into runoff and hope to recover your book value of the investment over time thru dividends and buybacks.   

In fact,   they had a buyback in place BEFORE the rights offering and there were some insider buys at a high of $2.70.   To them pivot around and do a rights offering at $2 just to gain a few more shares on the minority,  seems to be kinda small change for these people if they have that kind of $$$$.   

Be interested in any other takes on this Company.

[pennydredful]

That   is  big   money   compared  to  buying   5  day   old   bread  at  half  price.