Taiga Building Products Ltd T.TBL

takeover?

[canuckstocks]

taiga earned more than canwell in 2020 on revenue that was slightly less. Company has 620 Million in assets vs Canwels 1 Billion. I'd say they're too big to be taken by them at this point. canwel's equity 361 M vs taiga's 203 M. It would require an awful lot of capital for them to takeover taiga - i doubt their note offerings would cover it. and they have debt to pay

[canuckstocks]

maybe im wrong, but I hope not. 

[jcorobow]

I believe CWX just raised around $80 mil in PP and just unlocked $300+ mil on their revolver. All specifically for acquisition opportunities. They've got the capital.

[canuckstocks]

If taiga's management feels shares would be a good sell at $3.50 or so a piece when there are 108.5 Million shares... i dunno.. I'd say thats too low.  Their brand has been around since 1970's. and a lower cost distributor. With elevated lumber prices that would be pretty cheap I think  

[PaperBoi222]

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[JTDOUBLE]

Let the money do the talking .. if the price is right pretty sure most shareholders will agree!! But what would be the right price for takeover 40- 70 % premium??

[Stocker46]

Hard to find companies with a 100% match (seems the similar companies in the US are mostly private) .. but if you look at the home building materials & supplies wholesalers in general, the P/E ratios in the US run from a low of just over 7 to the mid 50's. If you apply the lowest (7) to tbl they would be trading over $6. Personally, I'd like to the SP closer to where it belongs before

[PaperBoi222]

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[canuckstocks]

I wanted to point that out, but more than that i wanted the chance to buy more for cheaper.. and this sure doesn't help. should have just ignored the bullboard and let the money do the talking because thats good advice. Taiga would also rather buyback shares cheaper.