Author Topic: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?  (Read 106455 times)

Rod

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #120 on: December 13, 2017, 05:51:16 PM »
I’m content to continue to hold the stock, both the common and the preferred (B shares). We should get a valuation on Parq Vancouver sometime in 2018. I’m optimistic that the value wil be $2+ per share. If that comes to pass it will be a game changer. With some more rationalization of the remaining holdings, I think we will have a solid NAV of $7 to $10 with the $2 from Parq. Much of that will be cash and near-cash. If the stock remains where it is now the oportunity to add value through share buy-backs will be immense. If the market is reluctant to reprice the stock, the buy-backs could go on indefinitely.
« Last Edit: December 13, 2017, 06:15:41 PM by Rod »


sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #121 on: December 13, 2017, 08:49:37 PM »
In the grips of ferocious tax loss selling Dumbdee hits an all time low of sub $2.40 - this in striking contrast of DC's estimate of it's value per share of $11.79 in just the latest Q3 report. Yet the masterminds behind this destruction of corporate value and collapse of the share price refuse to buy back any shares to support their estimate of the lofty value of their corporation.

The gong show of the Blue Goose shut down of the Tender Choice plant in Q3 underlines the poor decision making and capital allocation still resident in Dundee Corp. Purchased only 1 year ago, the Tender Choice plant was deemed unfit to carry out its processing work and needed significant repairs and modifications. The Blue Goose President was forced to walk the plank. Then the plant burnt down....

TORONTO, ONTARIO--(Marketwired - Oct. 19, 2016) - Blue Goose Capital Corp. ("Blue Goose") ("the Company"), a privately-held, Canadian-based protein and organic food company which is a subsidiary of Dundee Corporation ("Dundee") (TSX:DC.A) today announced the acquisition of Tender Choice Foods Inc. ("Tender Choice"), a leading Burlington, Ontario based processing plant specializing in the processing, packing and distribution of meat products.
"Blue Goose is pleased to have Tender Choice as part of the Blue Goose group of companies," said Ben Nikolaevsky, President and CEO of Blue Goose, "With the acquisition of Tender Choice, Blue Goose has acquired a tremendous platform to build on the rapid growth of its poultry operations, and allows us to facilitate our growth in the industry."

At this stage it is apparent that Dundee Corp should be placed in liquidation mode over the next few years. No new investments. Sell all assets at the best available price but not in a fire sale. Cut all admin, management & Board costs to the bone to limit the cash drain. Start buying back the preferred shares at prices less than half of par to cut both the ultimate liability & save on the quarterly dividend drain.

Is this not the best way to save shareholder value??


They canít buyback shares because they need liquidity to pay down the preferreds that are puttable. You may not like it but there is logic to it. As a D class preferred holder, I appreciate that too.

Ha! Yeah they're real short on cash or something that can be turned into cash to buyback the common shares. Sell off some of that consistently disappointing position in Dundee Precious Metals...

At the head office level, the corporation held cash of $53.0-million and a portfolio of publicly traded securities with a total value of $194.5-million at the end of the third quarter of 2017.

SafetyinNumbers

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #122 on: December 14, 2017, 02:57:25 AM »
In the grips of ferocious tax loss selling Dumbdee hits an all time low of sub $2.40 - this in striking contrast of DC's estimate of it's value per share of $11.79 in just the latest Q3 report. Yet the masterminds behind this destruction of corporate value and collapse of the share price refuse to buy back any shares to support their estimate of the lofty value of their corporation.

The gong show of the Blue Goose shut down of the Tender Choice plant in Q3 underlines the poor decision making and capital allocation still resident in Dundee Corp. Purchased only 1 year ago, the Tender Choice plant was deemed unfit to carry out its processing work and needed significant repairs and modifications. The Blue Goose President was forced to walk the plank. Then the plant burnt down....

TORONTO, ONTARIO--(Marketwired - Oct. 19, 2016) - Blue Goose Capital Corp. ("Blue Goose") ("the Company"), a privately-held, Canadian-based protein and organic food company which is a subsidiary of Dundee Corporation ("Dundee") (TSX:DC.A) today announced the acquisition of Tender Choice Foods Inc. ("Tender Choice"), a leading Burlington, Ontario based processing plant specializing in the processing, packing and distribution of meat products.
"Blue Goose is pleased to have Tender Choice as part of the Blue Goose group of companies," said Ben Nikolaevsky, President and CEO of Blue Goose, "With the acquisition of Tender Choice, Blue Goose has acquired a tremendous platform to build on the rapid growth of its poultry operations, and allows us to facilitate our growth in the industry."

At this stage it is apparent that Dundee Corp should be placed in liquidation mode over the next few years. No new investments. Sell all assets at the best available price but not in a fire sale. Cut all admin, management & Board costs to the bone to limit the cash drain. Start buying back the preferred shares at prices less than half of par to cut both the ultimate liability & save on the quarterly dividend drain.

Is this not the best way to save shareholder value??


They canít buyback shares because they need liquidity to pay down the preferreds that are puttable. You may not like it but there is logic to it. As a D class preferred holder, I appreciate that too.

Ha! Yeah they're real short on cash or something that can be turned into cash to buyback the common shares. Sell off some of that consistently disappointing position in Dundee Precious Metals...

At the head office level, the corporation held cash of $53.0-million and a portfolio of publicly traded securities with a total value of $194.5-million at the end of the third quarter of 2017.

All true, but they also have a ton of expenses to run the business annually so if you shrink the assets to much, the management expenses get too big as a percentage. Iím not saying itís a good reason but itís why they donít buy back stock now when they did when the stock was 10x higher.
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doc75

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #123 on: December 14, 2017, 04:29:29 AM »
All true, but they also have a ton of expenses to run the business annually so if you shrink the assets to much, the management expenses get too big as a percentage. Iím not saying itís a good reason but itís why they donít buy back stock now when they did when the stock was 10x higher.

There's probably too much margin of safety for them to invest in their own stock right now.  Makes them uncomfortable. 

In all seriousness:  I understand the need to maintain liquidity, but I'd like to see them put money into their own stock (or buying back prefs or whatever) rather than make new speculative investments.  Pare the operations back to focus only on rationalizing the existing portfolio.  Once the market starts giving them some credit, they can try to grow the company again. 



SafetyinNumbers

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #124 on: December 14, 2017, 08:59:47 AM »
All true, but they also have a ton of expenses to run the business annually so if you shrink the assets to much, the management expenses get too big as a percentage. Iím not saying itís a good reason but itís why they donít buy back stock now when they did when the stock was 10x higher.

There's probably too much margin of safety for them to invest in their own stock right now.  Makes them uncomfortable. 

In all seriousness:  I understand the need to maintain liquidity, but I'd like to see them put money into their own stock (or buying back prefs or whatever) rather than make new speculative investments.  Pare the operations back to focus only on rationalizing the existing portfolio.  Once the market starts giving them some credit, they can try to grow the company again.

But the liquidity is to redeem the E class preferred isnít it which is like buying back preferred.
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bizaro86

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #125 on: December 14, 2017, 09:10:09 AM »

All true, but they also have a ton of expenses to run the business annually so if you shrink the assets to much, the management expenses get too big as a percentage. Iím not saying itís a good reason but itís why they donít buy back stock now when they did when the stock was 10x higher.

Heaven forbid they trim down management expenses a bit as the business shrinks.


Og

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #126 on: December 14, 2017, 09:14:05 AM »
You guys can always call their CFO. She responds very promptly to shareholders.

doc75

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #127 on: December 14, 2017, 11:01:19 AM »
All true, but they also have a ton of expenses to run the business annually so if you shrink the assets to much, the management expenses get too big as a percentage. Iím not saying itís a good reason but itís why they donít buy back stock now when they did when the stock was 10x higher.

There's probably too much margin of safety for them to invest in their own stock right now.  Makes them uncomfortable. 

In all seriousness:  I understand the need to maintain liquidity, but I'd like to see them put money into their own stock (or buying back prefs or whatever) rather than make new speculative investments.  Pare the operations back to focus only on rationalizing the existing portfolio.  Once the market starts giving them some credit, they can try to grow the company again.

But the liquidity is to redeem the E class preferred isnít it which is like buying back preferred.

I understand why they want to maintain liquidity.  But occasionally they're deciding to throw money at new investments (or put more money into old investments).  This is also a draw on their liquidity. I'd rather see them put that money into buybacks.

In some cases they may be putting more money into things to keep them afloat.  Sometimes this is necessary and prudent but history has shown that they often throw good money after bad.   

At the very least I'd like to see them stop with new speculative investments. Surely they cannot expect better returns than investing in their own shares and proceeding rationally.


Rod

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #128 on: January 29, 2018, 11:03:39 AM »
Through it's holding in Union Group, Dundee indirectly owns 16M shares of ICC Labs (ICC-X), a Cannabis producer in Uruguay. I think it's worth watching because ICC has recently moved up from $1 to $1.70 as it seems to be catching the cannabis wave. At the current price it's worth about 50 cents per Dundee share, or roughly 20% of the market cap. I guess a best case scenario would be that ICC shoots up to $5 or so on a take over or continuation of the bubble, and Union Group sells. Dundee's share of that value would be about $1.40 per share, more than half the current market cap, a not inconsiderable amount.

colinwalt

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #129 on: January 29, 2018, 11:19:37 AM »
Through it's holding in Union Group, Dundee indirectly owns 16M shares of ICC Labs (ICC-X), a Cannabis producer in Uruguay. I think it's worth watching because ICC has recently moved up from $1 to $1.70 as it seems to be catching the cannabis wave. At the current price it's worth about 50 cents per Dundee share, or roughly 20% of the market cap. I guess a best case scenario would be that ICC shoots up to $5 or so on a take over or continuation of the bubble, and Union Group sells. Dundee's share of that value would be about $1.40 per share, more than half the current market cap, a not inconsiderable amount.

Thanks for noticing that and letting us know