Author Topic: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?  (Read 123736 times)

sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #40 on: July 14, 2016, 12:20:33 PM »
I decided to get exposure to this TauRx catalyst on July 27 by buying the August 9 calls.

I'm not much of an option buyer as usually I have no idea when the market will begin to appreciate the value that I see. However, with this being a potentially giant under the radar catalyst, I figured the downside in the equity on a negative result might be bigger than the premium paid.

I continue to own the Class D prefs as well.

Anyone else involved?

Interesting - are you certain TauRX comes out on that date?

Rebound in golds should be helping NAV as well. Own some GMP preferreds as well based on the catalyst that they will sell RichardsonGMP for some good sized dollars.


bskptkl

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SafetyinNumbers

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #42 on: July 14, 2016, 12:48:46 PM »
Thanks bskptkl.

It's interesting how much press Genting is getting on this. They are a much bigger company with a bigger stake but its much more relevant to DC because of the relative size of the stake to market cap.

http://www.theedgemarkets.com/my/article/all-eyes-gentings-taurx-wager

Top 5 positions: ELF IAM GCM.NT/GCM PIF EFR.DB

bskptkl

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #43 on: July 14, 2016, 01:10:09 PM »
Thanks bskptkl.

It's interesting how much press Genting is getting on this. They are a much bigger company with a bigger stake but its much more relevant to DC because of the relative size of the stake to market cap.

http://www.theedgemarkets.com/my/article/all-eyes-gentings-taurx-wager
They're paying a pr hack for publicity methinks.

SafetyinNumbers

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #44 on: July 14, 2016, 01:23:09 PM »
Yeah maybe.

I don't know anything about Malaysian equity markets. I would assume $30bn market caps makes it one of the biggest companies there so maybe some big fish small pond effect.
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bbarberayr

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #45 on: July 16, 2016, 06:14:10 PM »
I personally don't trust Dundee ever since they did something back in around 2007 which showed me that their interest was in management compensation, not helping customers.

What happened is they had a gold fund which held share in multiple companies.  They then signed an agreement extending the management contract for several years.  A few months later they decided to sell the shares and buy an operating mine and become an operating company, which was fine, but they were also required to pay out the management contract of about $30 million dollars. 

I immediately sold and have never bought or invested with Dundee since.

sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #46 on: July 16, 2016, 07:13:21 PM »
I personally don't trust Dundee ever since they did something back in around 2007 which showed me that their interest was in management compensation, not helping customers.

What happened is they had a gold fund which held share in multiple companies.  They then signed an agreement extending the management contract for several years.  A few months later they decided to sell the shares and buy an operating mine and become an operating company, which was fine, but they were also required to pay out the management contract of about $30 million dollars. 

I immediately sold and have never bought or invested with Dundee since.


Yes there are definitely some warts on this Toad but that is one of the reasons that a value investor can buy:

1.Fairly well backed preferred shares in a time of NIRP yielding >10% currently and 50% to 60% of par,
2. DC common trading between 30% and 60% of NAV over the last few months.

Management self interest may at some point align with all shareholders such that the purchase at these levels has paid off extremely well.



SafetyinNumbers

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #47 on: July 17, 2016, 05:39:57 AM »
I personally don't trust Dundee ever since they did something back in around 2007 which showed me that their interest was in management compensation, not helping customers.

What happened is they had a gold fund which held share in multiple companies.  They then signed an agreement extending the management contract for several years.  A few months later they decided to sell the shares and buy an operating mine and become an operating company, which was fine, but they were also required to pay out the management contract of about $30 million dollars. 

I immediately sold and have never bought or invested with Dundee since.

I think that was the formation of DPM you are referring to back in 2004. I believe they did pay out the management contract in stock but it went to Dundee Corp the parent and not to the management directly (although they own a lot of Dundee Corp). That doesn't make it better if you were a DPM shareholder but an important distinction if you are investing in Dundee Corp.
Top 5 positions: ELF IAM GCM.NT/GCM PIF EFR.DB

SafetyinNumbers

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #48 on: July 20, 2016, 03:56:18 AM »
Apparently Dundee Acquisition is close to a deal. This could be worth 50 cents to NAV.

http://www.theglobeandmail.com/report-on-business/streetwise/closing-in-on-a-deal-to-break-spacs-silence/article30998140/

TAUrx catalyst is next week as well. Could be a big week!
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sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #49 on: July 27, 2016, 06:24:22 AM »
Dundee (TSX-DC.A):
         Stock may trade down today.  They own about 5% of Taurx.  TauRx (private) has a Phase 3 Alzheimer's drug candidate (a new class in development) that missed its primary endpoint = failed trial
         Should come as no surprise as 99% of Alzheimer's drugs in development have failed