Author Topic: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?  (Read 74960 times)

Cevian

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #240 on: June 21, 2018, 01:59:53 PM »
I opened a small position in this as well today. The margin of safety is so huge that I reckon the monkeys at the helm won't mess up enough to make this a bad investment. Time will tell I guess ...

Same here


gokou3

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #241 on: June 21, 2018, 03:20:25 PM »
Common or prefs?

wachtwoord

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #242 on: June 25, 2018, 07:28:10 AM »
Common or prefs?

Commons. Not sure whether that's the best risk-reward investment but I find it easier to get a sense for value with common stocks versus preferreds.

How do you compare the two asset classes to determine best value in this case? Or did you buy both to not have to?
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

COMX - ALS.TO - MRCR - FELP - PDER - NVTR - 
 SODI - ADDC - WWIB.OL - HNFSA - IPO.TO - BONL - GNW -  BWEL - DC.A - POE.V - NYRT

gokou3

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #243 on: June 25, 2018, 10:04:20 AM »
Common or prefs?

Commons. Not sure whether that's the best risk-reward investment but I find it easier to get a sense for value with common stocks versus preferreds.

How do you compare the two asset classes to determine best value in this case? Or did you buy both to not have to?

For Dundee, I simply do not trust the competency or integrity of the management so from a risk perspective I don't have enough confidence in the commons.  The preferred OTOH offers a nice 12% dividend return (on cost) and I think it's very safe given the large discount to NAV at the moment.  However, if management continues to screw around and has more writedown, even the preferred may become uninvestable.  If they are able to turn around, then yes the common could provide a much greater return than the pref.

wachtwoord

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #244 on: June 25, 2018, 12:27:08 PM »
Sounds reasonable. I generally prefer to not cap my upside (by buying prefs) and take the extra risk with the commons. I control my risk by keeping the position small (since I agree with you management is simply terrible).

Of course at some price point the capped return with the prefs is preferable over the (potentially uncapped) returns of the common. I find it hard to determine what that price point is (even roughly).
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

COMX - ALS.TO - MRCR - FELP - PDER - NVTR - 
 SODI - ADDC - WWIB.OL - HNFSA - IPO.TO - BONL - GNW -  BWEL - DC.A - POE.V - NYRT

doc75

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #245 on: June 26, 2018, 09:58:08 AM »
I see that eCobalt is down more than 10% today and has been falling steadily to a new 52-week low (0.97 now, compared to $1.47 at end of last Q).  Dundee holds 16m shares, which is just over a 10% position, so any selling on their part should have triggered a notice.  They also had 400,000 warrants to purchase shares at $0.40. These expired June 1, so I would imagine they exercised them this Q.

Osisko has continued in free-fall since Dundee's exit in Q1.  I was hoping they'd also sell out of ECS but like they have not.

Lakesider

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #246 on: June 27, 2018, 01:50:50 PM »
I've jumped on the band wagon and taken a position. The valuation is so low that it should only take a bit of good news for the stock to go higher.

If they stop buying shit we should be fine. I'm not keen on their forward strategy with junior miners. Sounds like it would be quite easy to buy some worthless assets.

Fingers crossed Parq doesn't catch fire.

wisowis

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #247 on: June 27, 2018, 02:04:11 PM »
David Eby (Attorney General of BC) is putting a lot of effort into investigating the role of BC casinos in money laundering. Maybe a bit of (indirect) political risk to Parq (?)

https://www.cbc.ca/news/canada/british-columbia/bc-money-laundering-report-1.4723958

doc75

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #248 on: June 27, 2018, 06:16:49 PM »
David Eby (Attorney General of BC) is putting a lot of effort into investigating the role of BC casinos in money laundering. Maybe a bit of (indirect) political risk to Parq (?)

https://www.cbc.ca/news/canada/british-columbia/bc-money-laundering-report-1.4723958

Found this interesting twitter stream while searching for more on money laundering at Parq.  Haven't dug deeper but... lots of smoke:

https://twitter.com/Garossino/status/1009659203290402816

Lakesider

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #249 on: June 27, 2018, 07:07:53 PM »
Quote
New Parq Casino is an outrageous land deal—public assets leased way below market to a 2-bit US casino player, then millions in construction subsidies.

I don't think is is uncommon practice for big city redevelopments. Thats the way it happens across the globe.


« Last Edit: June 27, 2018, 07:09:59 PM by Lakesider »