Author Topic: CKI - Clarke Inc.  (Read 188495 times)

EdWatchesBoxing

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Re: CKI - Clarke Inc.
« Reply #10 on: January 17, 2014, 10:59:04 PM »


I own a lot....I suggest you check out the book value...after the Clarke trucking sale...too tired to give you a scenario...I did not know that Clarke was pushing a proxy vote a Sherritt who just sold it's royalty division to Altius another of my holdings.

If people post I will correct and add...other than that...it is another buck for 40 cents..Armoyan owns 48% so he is aligned with shareholders...

5% yield...book value is mostly cash...

Dazel.

LOL, I had a related "ah-ha" moment. I was reading the altius PR about the royalties and I wondered where I heard about Sherritt before. I found out a few days later that it was from reading about Clarke's holdings on Bloomberg.
« Last Edit: January 17, 2014, 11:02:04 PM by EdWatchesBoxing »


jm25

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Re: CKI - Clarke Inc.
« Reply #11 on: January 20, 2014, 10:29:35 AM »
All people have discussed is their views on Armoyan. I understand he's the force behind the business, but does anyone have a view of current business and future earnings potential?

Dazel

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Re: CKI - Clarke Inc.
« Reply #12 on: January 20, 2014, 10:59:48 AM »

The tanks business, freight that's left and the home heating division (should do very well this year with the new acquisition that was well timed-weather in the region has been very cold) are statistically undervalued. We do not know what his average cost is in Sherritt is now but it should do well...
 He has been successful at deploying capital in the past but there is a ton of cash on the balance sheet right now which is negative right now...however, I would expect a special dividend sometime in the near future. The market has not figured out the trucking sale yet.

Dazel

Myth465

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Re: CKI - Clarke Inc.
« Reply #13 on: January 20, 2014, 03:08:07 PM »
Thanks for the idea. I bought some.
I like that he holds spyglass and also looked at Royal Host a few years back.

Dazel thanks for your comments.

Myth465

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Re: CKI - Clarke Inc.
« Reply #14 on: January 30, 2014, 06:17:58 AM »
http://finance.yahoo.com/news/clarke-inc-announces-sale-commercial-141100960.html

Pretty big news. Interesting sale, thanks Dazel. I made clarke a 15% position after quite a bit of reading after your post.
Looks like operating companies are moving to Terra. Also interesting that they bought 7 million of the convertible debs in the pension fund.

Will be interesting to see the financials of the shipping / ferry business once the other ops are moved to discontinued operations, and will be interesting to see what other rabbits come out of the other segment which seems to contain quite a few hidden assets.

« Last Edit: January 30, 2014, 06:20:17 AM by Myth465 »

Dazel

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Re: CKI - Clarke Inc.
« Reply #15 on: January 30, 2014, 06:43:40 AM »


Armoyan is a value investors dream....he puts into action what we think. He has picked the
the businesses that have hidden value. The difference for us as a value investor is we see it but unless it is unlocked we sit for long periods of time "waiting". He also picks hard assets and I can value them easily to see what he is doing. I have mentioned on the Altius thread that it looks like the market has called a bottom in the commodity sector after a decimating 3 year bear market. Armoyan is already in the space...as that is where the value is right now.

Congrats Myth.

Dazel.

Dazel

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Re: CKI - Clarke Inc.
« Reply #16 on: January 30, 2014, 07:37:56 AM »


Myth,

The shipping and ferry assets value on the books will close to 0...when you net out the sale of the freight division...so any sale is boost to book value. I expect some capital structure moves soon.

Dazel.

bizaro86

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Re: CKI - Clarke Inc.
« Reply #17 on: January 30, 2014, 07:42:18 AM »
I'm a pretty big fan of this company, basically its undervalued assets with an excellent owner operator. I've owned some of their positions independently, but swapped it for a position in Clarke. I figure I'm getting the same exposure at a discount, with an excellent owner-operator who has the size and inclination to be an activist when necessary. I think the Canadian business community doesn't care much for hard nosed outsiders who stir things up, which is a big source of his "reputation." There might be a bit of a xenophobic undertone there (he's from Syria originally) as well.

I'm holding my position via the convertible debentures. When I bought them, they were trading at no premium to their conversion value, and had a slightly higher yield than the common. Basically, it was a chance to move up the capital structure to reduce downside risk with no loss of upside.

bskptkl

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Re: CKI - Clarke Inc.
« Reply #18 on: January 30, 2014, 11:34:27 AM »
I'm a pretty big fan of this company, basically its undervalued assets with an excellent owner operator. I've owned some of their positions independently, but swapped it for a position in Clarke. I figure I'm getting the same exposure at a discount, with an excellent owner-operator who has the size and inclination to be an activist when necessary. I think the Canadian business community doesn't care much for hard nosed outsiders who stir things up, which is a big source of his "reputation." There might be a bit of a xenophobic undertone there (he's from Syria originally) as well.

I'm holding my position via the convertible debentures. When I bought them, they were trading at no premium to their conversion value, and had a slightly higher yield than the common. Basically, it was a chance to move up the capital structure to reduce downside risk with no loss of upside.

Can the company redeem the debentures unilaterally? I see they tried and failed to get the conversion feature knocked out in return for a bump in rate.

Dazel

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Re: CKI - Clarke Inc.
« Reply #19 on: January 30, 2014, 12:33:02 PM »
Convertibles are callable at 100 they trade at 105....I owned the convertibles and converted them...the move to offer 50 basis points to get rid of the conversion warrant was very close. The yield on the common is better after tax now than the bonds.

Bizaro,

Nice to see you again...very Ballsy holding the bonds through the tender period...they were very close.

Dazel
« Last Edit: January 30, 2014, 12:47:11 PM by Dazel »