TSX:GDL - Post Discussion
Post by
lifeisgood1010 on Jan 19, 2023 3:34pm
Huge special dividend.
The more i think about it, the more i think BB123456 post make sense.
I took a look at all GDL reporting from 2001 to today.
Sales for 2001 to 2014 were from a low of $438m(in 2009) to a high of $536m (in 2004).
In that same period, inventory were from a low of $36m(in 2001) to a high of $74m (in 2014)
Market cap was from a low of $54m to a high of $117
In 2015 a year were sales were almost the same as last year($611m) they only had inventory
of $92m
Fast forward to today.After 9 months the sales are $482(so they should finish in the area of $600+
but inventory standed at $142m and the shareholders equity is $186m.
There is an excess of inventory anywhere from $35m to $50m.Once this inventory is sold and converted to cash it will equat to an excess of $4 to $6 / share.
I did an average of the equity to run this company over the last 21 years and it come to $103M
They will end up 2022 with more than $190m.So $87million more for just a tad more sales.
So maybe they need something like $115m to $125m to run GDL but not $190M.
This excess capital come down to $7.50 / share.
Anyway you look at it, there is just to much capital in this company.
Stephan Jarislowsky is very sharp.He didinot become a billionnaire for nothing.
This company is either for sales or we will get a HUGE SPECIAL DIVIDEND in March.
P.S.In 2016 this company was in bad shape because of poor management.They got rid of the president and put Patrick Goodfellow at the helm.Since he took over, Goodfellow as been improving year after year.
Staying long
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