Although the share price of a company is trading way under its book-value, it is a false observation to disregard such situation, especially after a prolonged period of time. I have learned this lesson by loosing $7K in Torstar, which i bought at $1.60 (break-even cost) and that ended up being taken over (private) at $0.73/share. The company had no debt and a book-value a little over $2.00/share. Its stock slumped on the market (below $2.00/share) for nearly 4 years. GVC is trapped in the same way. When a public company does not have an "insider" major shareholder it can be at risk should it be acquired, notwithstanding having good assets, a clean balance sheet and so on. MADISON owning over 50% of GVC has the entire leisure to buy GVC at the most cheapest price possible. The crucial problem when companies get acquired for peanuts is that there is no protection, no recourse available to shareholders in appealling a low-ball, detrimental offier. There should be a "rule" that companies being the subject of a takeover must be acquired at the very least at their "book-value" amount. A minority shareholder should be able to appeal any takeover offer that does not respect this principle of "fairness". Regrettably, regulators (securities commission, IIROC, etc...) do not intervene in this regard, leaving shareholders to act on their own, by going to Court.
There are just too many "sellers" trading GVC, now in a $0.38-$0.50 range, when the company has a book-value of $1.37 and a so-called "restructuring" which has been putted in place for at least the past 5 years. I can understand the approach of BIGRETURN11 and others, but there is a limit of time to witness that when any stock is unable to appreciate itself, one cannot think nor hope that the future of such company has a promising future.
GVC is a purely speculative stock having no growth potential.
Any asset sale would required the blessing of the major shareholder.
Obviously, MADISON will first want to buy the company and afterwards sell any asset to make its own profit.
2022 will most likely be the end for GVC.
| GLACIER MEDIA INC (CA: GVC) as of December 8, 2021 |
| Last: | 0.390 | | Change: | 0.000 | | Volume: | 0 | | Last Trade: | 12/07 |
Level ll Quote | Bid | Ask | | Price | Total Size | # of Orders | Price | Total Size | # of Orders | | $0.385 | 13000 | 2 | $0.385 | 1000 | 2 | | $0.38 | 45000 | 2 | $0.42 | 7000 | 1 | | $0.37 | 7500 | 2 | $0.425 | 3000 | 1 | | $0.36 | 5000 | 1 | $0.47 | 50000 | 1 | | $0.35 | 30000 | 2 | $0.475 | 41500 | 1 | | | | | $0.485 | 7500 | 2 | | | | | $0.49 | 32000 | 4 | | | | | $0.495 | 64500 | 2 | | | | | $0.50 | 20000 | 1 | | | | | $0.53 | 90000 | 1 | |