Post by
BlueJay2020 on Apr 12, 2021 12:47pm
My thoughts on Janes' press release
Firstly, it's axiomatic that Janes is primarily looking after himself, and I have no problem at all with that. As micro-investors we are happy to hang onto his coat tails.
What good will this move do? I'm not sure to be honest. It's not clear to me how it will generate any more leverage with the bank, who seems to be holding the whip hand at this point.
Have the current independents been doing their job? It seems they did in the early going, refusing to give the company away for a bunch of quarters per share. They did talk about strategic review, but nothing seems to have come of that yet. It's easy to see how a long tenure in that role could make things a bit too familiar. I'd be quite happy to vote in favour of Janes and Co, and perhaps I will be getting a call to solicit my support. I see no reason why he won't be successful in getting hthe three approved - what have the other shareholders got to lose?
Should we be getting a distribution like everyone else? Not necessarily - every situation is different. A&W sales have held up really well (fast food) as have Boston Pizza. Some of our sales have gone to Renegade Chicken (see below)!
What about the $6M lease termination fee? This was really interesting, and shows the value inherent in these leases, the embedded value of which is not on the Balance Sheet. I don't see why any of that should flow through to us - it would make sense to reduce the debt that has built up through the pandemic. Interesting that he went public with those numbers. I imagine SIR will not be happy.
Inadequate disclosures - he is bang on the money here. It's a very opaque reporting system at the best of times, but we have been given very little information.
Renegade Chicken - he really knocked this one out of the park, and I can see him taking legal action on this if he doesn't get the response he wants.
Response from SIR and Independent Trustees - will be interesting to see what, if anything, SIR says, and whether the Independent Trustees make a case to remain in situ.
Impact on SP - virtually none at this point, probably because it's not clear how having these new appointments would radically change anything. It's been good to see it holding it up well since the last lockdown.
End game - where is Janes going with this ultimately? Does he want to own SRV, or even SIR? He is getting very close to the magic 20% holding...
Comment by
jcw604 on Apr 12, 2021 2:38pm
Thank you for your analysis and also to Janes. All good.
Comment by
Xira22 on Apr 13, 2021 12:47pm
I'm right there with you on those coat tails. The release says they are not soliciting proxies right now. Is that likely to happen? If so, I want to be sure that he gets mine. How might that happen?
Comment by
flamingogold on Apr 13, 2021 3:40pm
Check with your broker and request that they mail it out to you. It's usually all or nothing. With some brokers/stocks you need to do that or else they just chuck it.