Author Topic: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?  (Read 21524 times)

gokou3

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #60 on: November 27, 2016, 04:46:11 PM »
Guess they needed a quick $38 million however they did sell close to the 52 week low....

Dundee sells 6.1M Dream Unlimited shares

Dundee Corp (C:DC)
Shares Issued 55,535,423
Last Close DC.A 11/23/2016 $6.14
Thursday November 24 2016 - News Release

Mr. John Vincic reports

DUNDEE CORPORATION SELLS SHARES IN DREAM UNLIMITED CORP.

In accordance with regulatory requirements, Dundee Corp. has sold 6.1 million Class A subordinate voting shares of Dream Unlimited Corp. Dundee continues to hold 15,536,288 Class A shares of Dream representing an approximate 19.97-per-cent interest.

Sculpin, Thanks for providing updates on this and other preferred share issuers.  I am an owner of the Dream Unlimited Preferred (DRM.PR.A) and own it for its cash-like characteristics (redeemable, higher up in the capital structure --> low risk).  I also own Dundee Series 5 which will be redeemable in 2.5 years for similar reasons.

With this sale of Dream by Dundee, do you see any signals from the company -- Is it 1) due to liquidity concern with Dundee or 2) risk ahead for Dream (e.g. RE bubble bursting)?  My view is that unless things got really bad, the preferred shares will still likely do ok given significant amount of common equity underneath the preferred shares for each company.




Cardboard

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #61 on: November 27, 2016, 05:42:40 PM »
They took it down just below 20%. Was it equity accounted?

I don't even want to look it up since their MD&A and financial statements give me a headache every time I look at them! And hard to find anything profitable in there.

They may have wanted to raise some cash since they are getting tight on their revolver with a recent reduction and they invested recently into that Blue Goose.

I still own DC.PR.B and DC.PR.D due to their great yield and with more than enough net assets to cover them.

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Rod

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #62 on: December 01, 2016, 03:30:51 PM »
They took it down just below 20%. Was it equity accounted?

I don't even want to look it up since their MD&A and financial statements give me a headache every time I look at them! And hard to find anything profitable in there.

They may have wanted to raise some cash since they are getting tight on their revolver with a recent reduction and they invested recently into that Blue Goose.

I still own DC.PR.B and DC.PR.D due to their great yield and with more than enough net assets to cover them.

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The DRM shares are valued at market. Agree with you about the preferreds. I own the Ds. They are the better value since they can be converted into the Bs in 2.5 years. Not sure the market realizes that!

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #63 on: December 08, 2016, 06:13:18 AM »
If any of you is interested into obtaining a high yielding security with relatively low risk, the DC.PR.B have experienced a bizarre selloff in recent days or just before the ex-dividend date on the 14. Nothing comparable in DC.PR.D, DC.PR.E or DC.A.

It pays roughly 10.6% depending on what price you may get now with an annual distribution of $1.422. Considering that these are marginable at about the same rate as liquid stocks above $2, that is a very good spread to earn on borrowed money.

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sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #64 on: December 13, 2016, 01:06:37 PM »
GMP - only broker that covers this as far as I know.

Will the resource recovery lead to them once again growing NAV and seeing the big discount narrow over the next year? 

Dundee   BUY
DC.A-TSX   
Last:   C$6.03
Target:   C$11.00
 
Deep discount to NAV remains
 
We are exiting a period of research restriction on Dundee Corp. (DC.A-TSX) due to an advisory role. Our updated NAV, including Q3/16 results, is now $13.52 (previously $14.88). Our NAV is lower q/q due largely to market depreciation in publicly traded shares of DRM and DPM and a lower management reported carrying value of UHIC. Despite the decline, the discount to NAV remains wide at ~55%. We believe that some investors may be continuing to apply deep discounts to the private investments.

DREAM sale eases near-term liquidity concerns

At the corporate level, DC.A’s credit line was reduced from $250 million to $125 million as part of an agreement extending the facility to March 14, 2017. At the end of Q3/16, $94 million had been drawn against the facility leaving ~$31 million available. Cash at the corporate level was ~$11 million. Subsequent to the end of the quarter, management announced the sale of 6.1 million shares of DRM at a price of $6.25 per share. The transaction added ~$38.1 million to DC.A’s existing cash balance. In our view, the DRM sale has eased near-term liquidity concerns but we still believe the balance sheet may restrict management’s flexibility going forward. Further asset sales of the liquid public investments remain a possibility.

Maintain BUY – NAV discount remains wide

UHIC remains the largest NAV contribution. In August, UHIC completed a restructuring to emerge with an essentially debt free balance sheet and with sufficient working capital to pursue an immediate goal of attracting a joint venture partner. This process remains ongoing.

In the near term, DC.A’s SPAC has scheduled a Dec. 20 vote on its proposed qualifying transaction with CHC Student Housing Corp. We would view a successful vote favourably and calculate that it could add ~$0.30-$0.40 to our DC.A NAV. Currently, we do not include the SPAC in our NAV calculation.

Our undiscounted NAV is $13.52 (previously $14.88). We apply a 20% discount to yield our price target of $11.00 (previously $12.00). We maintain our BUY rating. Please see Figure 1 for our NAV sensitivity analysis.
« Last Edit: December 13, 2016, 01:09:37 PM by sculpin »

Rod

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #65 on: December 14, 2016, 03:28:48 PM »
Anyone interested in following the construction of the Parq Vancouver development should go to this link:

http://skyscraperpage.com/forum/showthread.php?t=213941&page=25

Lots of up to date pictures. Opening is scheduled for September 2017.

sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #66 on: January 11, 2017, 08:26:27 AM »
The destruction of shareholder value in this Dundee subsidiary company has been epic. From $1.50 per share in 2007 to the current $0.03 offer price. From a multi billion $ bungled Spanish offshore natural gas storage to natural gas under Lake Erie to windmills in Africa of all things. Not sure how much DC.A has ploughed into this but it has been substantial....

Dundee Energy to review LP's strategic options

2017-01-10 20:19 ET - News Release
Shares issued 188,268,994
DEN Close 2017-01-10 C$ 0.035

Mr. Bruce Sherley reports

DUNDEE ENERGY LIMITED ANNOUNCES INITIATION OF STRATEGIC REVIEW PROCESS FOR DUNDEE ENERGY LIMITED PARTNERSHIP

Dundee Energy Ltd.'s board of directors has determined to initiate a process to identify, examine and consider a range of strategic alternatives available with respect to enhancing the value of its investment in Dundee Energy LP (DELP).

Strategic alternatives may include, but are not limited to, a debt restructuring, a sale of all or a material portion of the assets of DELP, either in one transaction or in a series of transactions, the outright sale of DELP, or business combination or other transaction involving DELP and a third party, and/or alternative financing initiatives.

Dundee Energy has engaged Dundee Capital Partners, an unrelated entity, and CW Leigh Cassidy of Whitewater Inc. as its financial advisers to advise the corporation in connection with this comprehensive review and analysis of strategic alternatives in connection with the process.

Dundee Energy has not set a definitive schedule to complete its identification, examination and consideration of strategic alternatives with respect to DELP. Given the nature of the process, the corporation does not intend to provide updates until such time as the board of directors approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is advisable. Dundee Energy cautions that there are no guarantees that the review of strategic alternatives will result in a transaction, or if a transaction is undertaken, as to its terms or timing. The strategic alternatives review process has not been initiated as a result of receiving any transaction proposal.

As previously disclosed, DELP and its lenders have been in continuing discussions regarding the reduction of DELP's borrowings. As a result of these discussions, the terms of DELP's credit facility have been amended to require that DELP reduce borrowings under its operating facilities to $55.0-million by Jan. 13, 2017. This represents a reduction of approximately $3.0-million in borrowings under DELP's operating facilities as at Dec. 31, 2016.

About Dundee Energy

Dundee Energy is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high-impact energy projects. Dundee Energy holds interests, both directly and indirectly, in the largest accumulation of producing oil and gas assets in Ontario, and, through a preferred share investment, in certain exploration and evaluation programs for oil and natural gas offshore Tunisia.

sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #67 on: March 02, 2017, 10:12:10 AM »
DC.A closing in once again on its 52 week low. One insider actively selling over the last 2 months....


Date   Transaction
Date   Insider Name   Ownership
Type   Securities   Nature of transaction   Volume or Value   Price
Feb 6/17   Feb 6/17   Goodman, Daniel   Indirect Ownership   Subordinate Voting Shares Class A   10 - Disposition in the public market   -400   $5.40
Feb 6/17   Feb 2/17   Goodman, Daniel   Indirect Ownership   Subordinate Voting Shares Class A   10 - Disposition in the public market   -1,800   $5.40
Feb 6/17   Feb 1/17   Goodman, Daniel   Indirect Ownership   Subordinate Voting Shares Class A   10 - Disposition in the public market   -15,200   $5.40
Jan 31/17   Jan 30/17   Goodman, Daniel   Indirect Ownership   Subordinate Voting Shares Class A   10 - Disposition in the public market   -300   $5.45
Jan 30/17   Jan 27/17   Goodman, Daniel   Indirect Ownership   Subordinate Voting Shares Class A   10 - Disposition in the public market   -5,200   $5.45
Jan 30/17   Jan 25/17   Goodman, Daniel   Indirect Ownership   Subordinate Voting Shares Class A   10 - Disposition in the public market   -8,900   $5.59
Jan 9/17   Jan 3/17   Goodman, Daniel   Indirect Ownership   Subordinate Voting Shares Class A   10 - Disposition in the public market   -1,500   $5.95

Cardboard

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #68 on: March 16, 2017, 09:35:04 AM »
There is a very wide gap that has now formed in expected return between DC.PR.B and DC.PR.D.

I was pointing out in early December that the DC.PR.B had really sold off and were quite attractive in the $13.50 range with a yield of 10.5%. Now they have rallied around 25% since that time and the yield has dropped to 8.5%. However, the DC.PR.D have moved up by only about 13% since that point and now still yield 8.15% which is the highest floater that I know of.

What is interesting is that if you assume conversion into the "B"'s in September 2019, the dividend distribution from the "D"'s over a 5 year period plus the appreciation to catch up to the "B"'s represents an annual yield of 12.5%.

That is a very wide spread between fixed rate reset preferreds and floaters which on my screen vary from 0.5% to 1.9% using the same math.

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sculpin

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Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #69 on: March 29, 2017, 09:52:11 PM »
2016 results tomorrow...

Will be interested on how the clean up of their stable of troubled investments is progressing. Perhaps the rise in the price of oil - hopefully to $60+ by this Summer - may save some of the investment in United Hydrocarbons Intl. Hard to believe that Dundee had invested a total of more than $400mm in this highly speculative exploration junior in the heart of sub Sahara Africa in the country of Chad - this amounts to over $7 per share. For perspective the DC.A current market cap is $234 million at $4/share current price.

As at September 30, 2016, the Corporation’s carrying value of its 85% interest in UHIC was $189.5 million, and was net of an
impairment of $215.2 million recognized in the third quarter of the prior year. Additional information regarding UHIC may be
accessed at www.unitedhydrocarbon.com.




Dundee Corp. senior management will host a conference call on Friday, March 31, 2017, at 10 a.m. ET, to discuss the company's fourth quarter and year-end 2016 results.

Fourth quarter and year-end 2016 results conference call and webcast

Date:  Friday, March 31, 2017

Time:  10 a.m. ET

Webcast:  at the company's website

Live call:  1-888-231-8191 or 1-647-427-7450

Replay:  1-855-859-2056 or 1-416-849-0833

Replay passcode:  87507054

Dundee plans to issue a news release containing the fourth quarter and year-end 2016 results after market close on Thursday, March 30, 2017, and will also post it to the company's website. The conference call will be archived for replay until Friday, April 7, 2017, at midnight. An archive of the audio webcast will also be available at Dundee's website.
« Last Edit: March 29, 2017, 10:29:20 PM by sculpin »