Leon's Furniture Ltd T.LNF

Dutch Auction

[retiredcf]

It appears to put a floor on the downside through Dec 30th at 24.30 and caps the upside at 25.05. Is this correct?

The price can still breach those levels. Since $200M in shares only represents a bit more than 10% of shares, it is likely that there will be a pro-rata allocation, based on the number of shares tendered in total. In a Dutch auction, daily trading does not matter as the company is buying all the shares in one block directly from shareholders who tender to the auction, which is completely voluntary to shareholders. The $24.30 to $25.05 is the buying range for the company, but depending on what investors expect the price will still vary (and in fact broke $24.30 today already). We typically will not tender to these deals. The company believes its shares are too cheap, and is willing to spend $200M in one shot to prove it. This increases per share earnings leverage by reducing the number of total shares outstanding.

Nicely explained by 5iResearch. GLTA

 

[Tierney]

I have been a shareholder of record for 3.5 years. While I've enjoyed the special dividends and rise in share price, I'm now thinking about selling. People can only upgrade their homes so much. I'm leaning more towards people spending their $ on travel and both Mastrcard and Visa look like good buys right now. GLTA

[Kpitreal]

Home reno business is non stop action. Add 300000 approx immigration per year. Also Canada is a best in class destination for students and people relocating. The secret Canada is a great safe place to live is out. Lnf prints free cash.