Author Topic: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?  (Read 123856 times)

sculpin

  • Hero Member
  • *****
  • Posts: 718
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #180 on: April 25, 2018, 09:08:33 AM »
Horizon Kinetics done selling??


Cardboard

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2936
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #181 on: April 25, 2018, 10:28:14 AM »
I have been buying the preferreds "B".

Amazing value and they would have to screw up in a crazy way to impair these. And even if partially impaired, they are at $11.40 vs par of $25...

Cardboard

doc75

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 569
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #182 on: April 25, 2018, 11:36:37 AM »
I have been buying the preferreds "B".

Amazing value and they would have to screw up in a crazy way to impair these. And even if partially impaired, they are at $11.40 vs par of $25...

Cardboard

Ditto.  And couldn't resist picking away at some common in the mid $1.70s. 

Rod

  • Full Member
  • ***
  • Posts: 156
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #183 on: April 25, 2018, 01:51:00 PM »
I’m split half and half between B prefs and common. I’ve been reinvesting the dividends from the prefs into common. I don’t average down—I set a position size at the beginning, so reinvesting divs is all I can do. Feels good to get a 12% yield then reinvest that in assets that seem to be worth at least double or triple the price I’m paying.

sculpin

  • Hero Member
  • *****
  • Posts: 718
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #184 on: April 30, 2018, 07:37:55 AM »
Dundee: An Under The Radar Holding Company Trading At A Significant Discount To Conservative NAV


https://seekingalpha.com/article/4167479-dundee-radar-holding-company-trading-significant-discount-conservative-nav


Summary

Trades at a significant discount to conservative NAV of $4.41 per share, compared to stated NAV of $10.36.

Dundee has a variety of levers to pull to realize value for shareholders; it continues to de-risk the portfolio and is reducing costs at the corporate level.

The Goodman family has significant financial and reputational skin in the game and has never sold a share.

Liquidity concern re preferred notes due 2019 is unwarranted as it has the option to pay cash, issue common shares or a combination of the two.

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 662
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #185 on: April 30, 2018, 08:25:48 AM »
A couple questions after 15 minutes of research:

Aren't they liquidity-constrained? Based on the CC comments they have 60 million in cash needs this year. Next year they'll have to make a decision on how they want to redeem the (82 million par value?) preferred. The idea is that they will sell off assets to raise cash, thus closing the large market price-NAV spread right? Why haven't they been more aggressive in selling off assets to raise cash?

Do they have any major subsidiaries that will likely be cash generative in the near future? Similarly, do they have any subsidiaries that are strong businesses?


 

sculpin

  • Hero Member
  • *****
  • Posts: 718
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #186 on: April 30, 2018, 01:56:17 PM »
A couple questions after 15 minutes of research:

Aren't they liquidity-constrained? Based on the CC comments they have 60 million in cash needs this year. Next year they'll have to make a decision on how they want to redeem the (82 million par value?) preferred. The idea is that they will sell off assets to raise cash, thus closing the large market price-NAV spread right? Why haven't they been more aggressive in selling off assets to raise cash?

Do they have any major subsidiaries that will likely be cash generative in the near future? Similarly, do they have any subsidiaries that are strong businesses?

Well their position in Dundee precious metals is publicly traded and currently worth $118 million - this could be sold easily over the next year to raise money to redeem those preferreds.

SafetyinNumbers

  • Sr. Member
  • ****
  • Posts: 391
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #187 on: April 30, 2018, 05:59:44 PM »
I think itís important to note that holders chose to redeem less than allowed at previous redemption dates of DC.PR.E and that will likely be the case on June 30, 2019.

Its possible, they will trade like DRM.PR.A which trade at a premium to par and are puttable at any time.
Top 5 positions: ELF IAM GCM.NT/GCM PIF EFR.DB

obtuse_investor

  • Sr. Member
  • ****
  • Posts: 371
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #188 on: April 30, 2018, 06:13:26 PM »
I ran into a writeup about Dundee today from Roumell Asset Management, which is a value shop of the Ben Graham variety.

http://www.roumellasset.com/pdf/update_1Q2018.pdf

It includes a SOTP analysis and their conservative estimate of NAV comes to about $4.40/share. The writeup is on pages 5 and 6.

Enjoy.
Value Investor who manages his personal portfolio with a 25-45 year time horizon | @obtuse_investor

doc75

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 569
Re: Dumbdee - The Goodmans, The Bad & The Ugly - 30% of NAV bargain?
« Reply #189 on: April 30, 2018, 06:36:12 PM »
I ran into a writeup about Dundee today from Roumell Asset Management, which is a value shop of the Ben Graham variety.

http://www.roumellasset.com/pdf/update_1Q2018.pdf

It includes a SOTP analysis and their conservative estimate of NAV comes to about $4.40/share. The writeup is on pages 5 and 6.

Enjoy.

Just FYI the Seeking Alpha post above is from the same outfit.

I really don't understand fears over the pref A redemption.  There are plenty of levers to pull.