HNFSA/HNFSB - Hanover Foods

[Spekulatius]

Amongst the dead money stocks, I own, this is like an Egyptian Mummy. Owning this seems like owning a mummy and hope that it comes alive.

What are the thoughts? I am not adverse to waiting, but is there a reasonable case, where this stock creates a return on investment for minority owners? The management gets their inflated salaries, the company jets and the pensions but the owners will have to do with $1 in annual dividends for how long?

[Hielko]

I guess it all depends on timing. If the status quo is maintained forever I doubt this investment will work out. But possible at some point in time the majority owners might decide that selling the business is their best option. I don't know exactly what a strategic acquirer could pay for this business, but wouldn't be the first time that some sleepy OTC stocks get sold for a huge premium. If things change between now and the next 5 years you will probably do great. If it's in 10 years.. i don't know. If it's in 20, 30 or 50... probably not.

[Spekulatius]

I struggle to even come up with a potential buyer for this low margin business that will not get better. The only public peer is SENEA, which actually has much better governance and results over the last decade, yet trades at 0.6x book (or 0.5x book with LIFFo reserve).

Best case scenario for shareholder is liquidation but how likely is that?

[Spekulatius]

In case anyone is interested:
https://www.proxydocs.com/0/001/420/589/hanover_foods_corp_1st_qr_11182019.pdf

[Stuart D]

In case anyone is interested:
https://www.proxydocs.com/0/001/420/589/hanover_foods_corp_1st_qr_11182019.pdf

^Thanks for posting.

[fishwithwings]

3Q report (https://www.proxydocs.com/0/001/493/050/hanover_foods_corporation_cfs.pdf). Unfortunately I don't have the latest one.