Superior Plus Corp T.SPB

Why the Dip?

[Schussing56]

In my opinion, yesterday's dip had nothing to do with the numbers and, everything to do with the announced retirement of Luc Desjardins. When he took over this company, they were heavily in debt, the share price had dipped to nearly $5, and prospects looked slim. Desjardins focused the company, got debt down to reasonable levels, sold off non-core assets, signed deals with major players, etc. Remember, a company is only as good as their management. Desjardins' retirement is significant and, there is no guarantee SPB will find somebody as good, to replace him.

[pjn0987654321]

Yes, Luc was good but as the saying goes, "what have you done for me lately?"   No dividend raise in 10 years.  He got the share price up from $5 but since 2014, it has languished.  There have been many upward spikes but they always fall back.   His moves to reduce the dividend by 1/2 when he got in and then pay down debt were all obvious.   Again

[bttmfischer]

"good enough" is a proper way to put it. I would like to use the analogy "Winston Churchill was a very good war-time prime minister, but less than mediocre in peacre and recovery." I did not like deal Luc made for hydrogene with that Quebec group. There are a lot of unknowns. And the derivatives? Why does Superior need to do that?

[bttmfischer]

Another thing. While Brookfield does have a significant interest in Superior, but Marquard and Bahls now owns about 20% of the company, and they may be wispering in the years of the board members of SPB about the right choices for a new CEO. 

[Baystboy07]

On the conference call yesterday Luc danced arp7nd a question on a strategic review being performed by the Board upon his retirement...he answered it in the context of $SPBs acquisition strategy and the analyst was asking about $SPB itself...next Few months will be interesting...GLTA

[Schussing56]

I think you're missing the point. Desjardins' strategy of selling off non-core assets and acquiring smaller businesses, I think, will pay off handsomely in the long run. SPB currently has one of the highest dividend pay-out ratios on the TSX and, they are deploying their capital for acquisitions. In my opinion, it is a genius strategy, something that was accomplished by Luc Desjardins

[Baystboy07]

I am not missing the point at all...if you listened to the call the analyst asked if the BOard will undertake a strategic review of the company with the CEO retirement....ie..put the Company up for sale...Luc sort of ignored him and answered it from $SPBs acquisition strategy...I think this Company gets sold in the next 12 months. GLTA

[bttmfischer]

Was the possible sale of CHE mentioned at all during the calls, or is that your own hypothesis? Now if we can rely on the report on insider trading of CHE(which is a maybe at best), there was very little buying by insiders. Usually when there are arbitrage people sniffing, insiders would buy shares.

[bttmfischer]

I am truly sorry folks...Wrong board. I've never done this before,  but who knows, I might be getting the Biden disease, and this is the first sign of it.  Scary indeed

[Bigbear7405]

Way better than the Trump disease

[pjn0987654321]

I wouldn't say no to $100 a share and if we get there, I will reconsider my opinion of Luc.