Post by
smcapinvestor on Nov 09, 2023 11:37am
Trading at 0.2x book value
Regardless of the current headwinds to the business, the market valuation at this time is ridiculous for a profitable company.
The $CAD value of equity is ~369 million and the market cap is ~$70 million.
I struggle to understand why an anticipated distribution reduction or cut that was well reflected in the stock price has generated such a reaction. I can only chalk it up to a large retail holding.
The company stated it will see an increase of $5 million in interest expense next year at current interest rate levels and $3 million in higher insurance expense. The company had paid $13 million in distributions through Q3.
Comment by
TheeRook on Nov 09, 2023 5:32pm
HOT lost $$$ this Quarter. - $1.345M
Comment by
robertbig on Nov 10, 2023 1:02pm
he book value can mean little to shareholders, the recent update was all over the place, and gave the impression of a company fighting against going under.... there can be value on the books, and a company can still go bankrupt, in which case, the shareholder zeros.... maybe if you were holding some of their debt you'd walk away with something...