Melcor Developments Ltd T.MRD

Management is complacent

[314159]

I've followed this company for 20 years. At times I have indeed made good money. Not recently. My conclusion is that management and the Board is complacent and lack the ambition and energy that is needed to realise value here. How can we light a fire under their rear ends?

[Thor16]

Good questions to ask at the next AGM!

[babybunny]

My take is that Melcor runs its operations very well, but is terrible at capital allocation.   Shares are currently trading at 40% of a very solid book value.  Making maximum use of the NCIB is a no-brainer ... and yet the company often takes a break for no apparent reason.  Shareholders including myself have suggested to management that a SIB (substantial issuer bid) would be

[Thor16]

~1.5% of the float (~210k shares) in Q2.  With the NCIB alone, not including any blocks which may become available for repurchase from time to time, they can take another ~75k per quarter totalling around 2.5% of the outstanding float in Q2-Q4.  Coupled with the all time high annualized dividend (understanding there is some lost time to make up for) not too bad? Have to look at it from

[babybunny]

I think we are on the same page Thor16, we just differ a bit in our assessment of how well the company is doing with repurchases. I will concede that Melcor has gotten the buyback religion just a bit ... but so far they are popping into church on Easter Sunday and that's it.   The recently-expired NCIB was special, with a daily limit thrice normal.  The daily limit is back

[Thor16]

sent you a private message.

[Malpeque2]

Yeah Yeah Yeah.    The family has control.   Not much you can do.   Beg.  Plead.  Coddle them.  They could go do some "block" trades but they don't.    You are allowed more volume under these block trades.   A SIB would work too,  but they really want you to get bored and impatient and go away so they can buy