Post by
slimjim11 on Jan 21, 2016 4:10pm
Takeover candidate
With steady cash flow, high dividends earned and paid in US dollars, stable municipally-backed diverse customers in a recession resistant business with a proven track record of growth, STB is an attractive takeover candidate for any pension fund or yield-hungry corporate acquirer. With market cost of long term debt at record lows, and with STB yielding 13%+, the logic of acquiring STB should be being considered by many potential suitors. I would not be surprised to see a competitive bid emerge with a price in the C$6 to C$7 range, which would still offer an attractive yield pick up for the acquiror. It will be interesting to see how shareholders reply.
Comment by
slimjim11 on Feb 28, 2018 6:04am
Called it. January 21, 2016. Slightly higher buyout price than predicted. But the shares closed at C$4.70 on Jan 21 2016 the date of my above post, I have been receiving a 13% yield on my cash cost since then and I have no complaints.