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Bullboard - Stock Discussion Forum Temple Hotels TMPHF

Temple Hotels Inc owns hotel real estate in primary and secondary markets across Canada. Its segments include Fort McMurray, Other Alberta, and Other Canada. The properties portfolio of the company include British Columbia Properties, Alberta Properties, Saskatchewan Properties, Manitoba Properties, Ontario Properties, Nova Scotia Properties, and Northwest Territories Properties among others. see more

GREY:TMPHF - Post Discussion

Temple Hotels > Dilute us
View:
Post by mangoe on Nov 25, 2016 4:07pm

Dilute us

Then roll back our shares for a cheap take over bid by various insiders.
Comment by russter on Nov 29, 2016 1:31pm
To buy or not to buy that is the question, Is tph going to be owned by Moregaurd by dikin us out of our buyot profit by driving our shares to pennies by stupid moves like this?
Comment by ValueWins on Nov 29, 2016 7:48pm
This post has been removed in accordance with Community Policy
Comment by russter on Nov 30, 2016 12:09pm
I'm not a lawyer so i don't know, but I doo know there was a better way to handle fund raising...sell a hotel or two that's at the bottom of the revenue stream. Some hotel chain would buy them. Moreguard perhaps?
Comment by DanielDarden123 on Dec 01, 2016 12:28pm
If the hotels were mortgage free, selling would yield cash to pay the deb holders. Unfortunately, they are not so the debs would remain. Dilution is the only option to reduce the massive debt load. Equity/sh will drop accordingly which makes the future murky at best. Even more bothersome if all the rights are not exercised. Good luck.
Comment by robbie80 on Dec 01, 2016 5:26pm
If all shareholders exericise their rights, there will be no dilution. Morguard and Burgundy still controls 55%. If half of retail shareholders exericise rights, total shares of Morguard and Burgundy will be increased to 66%. If none of retail shareholders exericise rights, Morguard and Burgundy will pay $40M to purchase all these shares and give them total to 75%.
Comment by DanielDarden123 on Dec 01, 2016 6:35pm
By dilution, I am referring to the increase in the share count; which will virtually double if all the rights are exercised. As a consequence the net assets per share will be roughly halved. The same is true for the cashflow and the earnings. I don't believe that the insiders have guaranteed that all the non-exercised rights will purchased and exercised by them but I could be wrong as I only ...more  
Comment by mnztr on Dec 16, 2016 6:53pm
Hmmm as a sharholder I just this as dead money and I will not throw more good money after bad. I wonder what is in it to buy more of this toilet paper.
Comment by mediainvestor on Dec 04, 2016 1:31am
Technically, the market would have more shares BUT, the enterprise value is the same. You have much less debt. so more cash for shareholders. This is 'value' dividend play or investment. It's basically and real estate 'income trust.'