Post by
lifeisgood1010 on Feb 15, 2024 2:00pm
NCIB.Buying at a fraction of their asset value
I was looking if GDL was using it's over capitalized balance sheet to buy some shares under their renewed NCIB.
The NCIB is for 5% of the outstanding shares (426,157)
Since initiating the NCIB in nov. 2022 and renewing it last nov.,
they have purchased 48,600 shares or .6% of total shares or 1.25% of the float.
That is not much but better than zero.I hope they continue on that path at a faster rate.
But with such a tiny float, it must not be easy to do.
Looking at the bright side, all of these shares have been purchased below $14
Since book value was $22.83 at Aug. 31st and market value of their assets
probably north of $30,to buy at these low price adds value for the remaining
shareholders.
I hope they had another good quarter even if the building environment was slow in the quarter.
They should be reporting in the next few days.
Comment by
CarlM20 on Feb 15, 2024 8:39pm
I agree, but the dividend was 0,50$ twice, that is $1 total. Shares at $14 ...dividend yield more like 7,1%. But it is variable, maybe earning this friday will tell if they maintain it steady. My feeling is a good surprise. Do you think it is a good idea they do a Dutch Auction type of distribution? I could raise the point at the next AGA. Thanks.