Multibagger speculative ideas

[BargainValueHunter]

ABX JAN17 $10 calls

[Guest MarkS]

Deepsouth,  thanks for the response. You made a lot of good points and certainly got me thinking/researching.  I'm not sure I agree with all of your comments, but I appreciate them.

[sculpin]

MHY.un - Dragging on forever

 

August 10, 2015

Data & Audio-Visual Enterprises Holdings to seek court order on how to disburse proceeds from Rogers-Mobilicity deal

By Christina Pellegrini

Data & Audio-Visual Enterprises Holdings Inc. will head to court Wednesday to seek an order outlining how to finally disburse the proceeds from...

 

Data & Audio-Visual Enterprises Holdings Inc., the entity left languishing in a CCAA proceeding after the operating company, known by the brand Mobilicity, was sold to Rogers Communications Inc. in late June1, will head to court Wednesday to seek an order outlining how to finally disburse the proceeds from its sale.

 

The company has an estimated $358 million in cash to distribute, according to documents filed August 7. It has dipped into these funds to pay ongoing routine expenditures and a $2-million balance on the debtor-in-possession loan that was repaid on July 27. Holdings also has an unpaid bill from its financial advisors in connection to their work on the Rogers sale, which will further deplete what can be recovered.

 

In an affidavit, chief restructuring officer William Aziz states that the cash amount is "sufficient to satisfy the amounts payable" to the holders of both first- and second-lien notes, as well as any court-ordered fees, adding "there is a residual amount available to at least partially satisfy unsecured claims against Holdings."

 

As of June 30, court filings say that first- and second-lien noteholders are owed at least $157.6 million and $59.2 million, respectively, while unsecured debt outstanding exceeds an estimated $313.5 million. Certain amounts in respect to the first- and second-lien were in dispute, per the monitor's report filed on July 14.

 

Holdings will now ask the judge to approve a process that will require groups with any outstanding claims, excluding court-ordered charges and first- and second-lien notes, to come forward and file the necessary paperwork before Sept. 21. Aziz says "it is unlikely any material unknown claims exist" against Holdings.

 

Since the terms of exactly how and when the funds will be distributed are still a "work-in-progress," the company is also seeking its stay period to be extended until Oct. 30.

 

cpellegrini@nationalpost.com2

http://www.theglobeandmail.com/report-on-business/mobilicity-creditors-fighting-over-funds-from-rogers-sale/article25522095/

 

14th report of the Monitor ----- July 14th: http://documentcentre.eycan.com/eycm_library/Project%20mike/English/Monitor's%20Reports%20(Sixth%20and%20Eighth%20Report%20are%20located%20in%20their%20own%20sub-folders)/Fifteenth%20Report%20of%20the%20Monitor_(July%2014,%202015).pdf

 

Mobilicity’s sale to Rogers Communications Inc. is complete, but the drama appears to continue among the small wireless carrier’s creditors as they argue over the distribution of funds from the deal.

 

Before the $465-million deal – which Mobilicity announced three weeks ago after securing buy-in from the federal government through the transfer of a swath of spectrum licences to Wind Mobile – the company had been under court-supervised creditor protection since September, 2013.

 

Along the bumpy road to a sale, there were several disputes involving creditors, particularly Catalyst Capital Group Inc. and the ad hoc committee of bondholders who together held most of the company’s debt.

 

Rogers agreed to pay $440-million in cash and assume $25-million in trade liabilities. The deal closed on July 2, but new court filings show the distribution of those funds has stalled.

 

As part of the transaction, Rogers negotiated a separate payment to Catalyst, which held first-lien bonds with a principal amount owing of $69.8-million. Rogers has now paid a total of $344.5-million – referred to as the “cash amount” – to Mobilicity’s court-appointed monitor, Ernst & Young Inc., indicating Catalyst received total proceeds of about $95.5-million.

 

Catalyst, the Toronto-based private equity firm run by Newton Glassman, agreed to release any claim against the remaining cash Rogers paid for the transaction.

 

Now, the remaining secured and unsecured creditors – many of which are Canadian and U.S. investment firms that typically run mutual funds – seem to be at odds about how exactly that amount will be distributed.

 

In previous court filings in the creditor protection proceeding, Catalyst said it was concerned that certain bondholders held multiple classes of debt and that it could put them in a conflict of interest.

 

In court filings on Tuesday, the monitor said it has not yet been able to resolve some disputes over how to pay Mobilicity’s secured and unsecured creditors.

 

Since Mobilicity’s assets have been sold, the distribution of the proceeds is being managed by Data & Audio-Visual Enterprises Holdings Inc. (known as “Holdings” in the court documents).

 

The terms of the sale agreement guarantee payment of the “total amounts owing” under the remaining first-lien notes (not owned by Catalyst) as well as the company’s second-lien debt and its debtor-in-possession (DIP) financing. As of June 30, that comes to a total of about $220-million.

 

The monitor is supporting an order to pay off the DIP notes immediately (the amount owing is just under $2-million), but payment of the rest of the secured debt remains unsettled. There are disputes over a “pre-payment premium” related to the first-lien debt as well as over the amount of interest properly owing on the second-lien notes.

 

Plus, Mobilicity’s unsecured debt totals more than $300-million, and the monitor said it has learned of new unsecured claims since the Rogers deal was announced.

 

“A combination of practical issues and a lack of consensus on the mechanics of the distribution resulted in a decision by [Holdings] not to seek a distribution of any of the cash amount at this time, other than to the holders of the DIP notes,” Ernst & Young said in the filings on Tuesday.

 

The monitor also said it recommends paying off a portion of the remaining first- and second-lien debt quickly, at least to help reduce ongoing interest charges, adding that it “intends to continue to facilitate discussions to this end.”

 

Representatives of Holdings were in court on Wednesday seeking approval of the distribution of funds to pay off the DIP financing as well as the transfer of signing authority solely to Bill Aziz, who is the chief restructuring officer and only remaining officer with a day-to-day administrative role.

 

A spokesman for Holdings declined to comment on the disputes between creditors on Wednesday.

[gr33ngi4nt]

BBD.PR.B is a speculative multibagger position I have.

[sculpin]

BBD.PR.B is a speculative multibagger position I have.

 

This idea has crossed my mind as well but the size of the debt in front of these has always seemed too daunting. I don't think the Feds or the Qc govmt wants BBD to go down in the flames of a bankruptcy but after Nortel who knows. Perhaps the potential of a transport sale as mentioned earlier in the Summer in the Globe (below) could provide some breathing room for the aero side. I still wonder who put so much money into this thing by way of common equity earlier this year.

 

Desjardins analyst Benoit Poirier figures Bombardier Transportation could be worth as much as $6.6-billion. Last month, China's two state-owned train makers merged to form the single biggest company in the sector globally by revenue. In some ways, a Bombardier-Siemens combination would be "a European answer to the huge Chinese merger," said Maria Leenen, chief executive officer of SCI Verkehr, a rail strategy and consulting firm in Hamburg, Germany.

[bskptkl]

MHY

 

Any guesses to size of additional allowed claims pool?

This seems to be largest variable left.

They hinted at D&O claims in the 16th report of the monitor.

Sure hope Quadrangle (who ate it on $45 million of unsecured sub notes) doesn't make trouble.

 

I am going to guess the secured creditors get their act together and settle disputes allowing payoff of secured debt by the end of this month. That would stop the clock ticking on interest and leave more for the unsecured claims.

[sculpin]

I believe that I saw that there is no additional interest accruing on any debt beyond the transaction date. As far as the CRO, he says... Aziz says “it is unlikely any material unknown claims exist” against Holdings. I would love to receive the secured payment ($0.65/unit?) from MHY in the next few months.

 

 

MHY

 

Any guesses to size of additional allowed claims pool?

This seems to be largest variable left.

They hinted at D&O claims in the 16th report of the monitor.

Sure hope Quadrangle (who ate it on $45 million of unsecured sub notes) doesn't make trouble.

 

I am going to guess the secured creditors get their act together and settle disputes allowing payoff of secured debt by the end of this month. That would stop the clock ticking on interest and leave more for the unsecured claims.

[gr33ngi4nt]

BBD.PR.B is a speculative multibagger position I have.

 

This idea has crossed my mind as well but the size of the debt in front of these has always seemed too daunting. I don't think the Feds or the Qc govmt wants BBD to go down in the flames of a bankruptcy but after Nortel who knows. Perhaps the potential of a transport sale as mentioned earlier in the Summer in the Globe (below) could provide some breathing room for the aero side. I still wonder who put so much money into this thing by way of common equity earlier this year.

 

Desjardins analyst Benoit Poirier figures Bombardier Transportation could be worth as much as $6.6-billion. Last month, China's two state-owned train makers merged to form the single biggest company in the sector globally by revenue. In some ways, a Bombardier-Siemens combination would be "a European answer to the huge Chinese merger," said Maria Leenen, chief executive officer of SCI Verkehr, a rail strategy and consulting firm in Hamburg, Germany.

 

Agreed. I think how you lose is if the company goes bankrupt or the gov't comes in to save the last few manufacturing jobs in Canada but lets the equity burn. I doubt there is enough appetite to do another debt deal which would be another knock.

 

It is increasingly clear to me that C-series will make or break that company long term considering BBD's cash generative businesses are weakening (Global delays, bizjet mkt weakness, weaker margins at Transport)... which was less apparent to me following the equity raise that happened earlier in the year. The good thing is that we should see cash burn come down as we get closer to EIS completion but I don't know what the catalyst is for airlines to say... okay it is time to put in orders...

[bskptkl]

I believe that I saw that there is no additional interest accruing on any debt beyond the transaction date. As far as the CRO, he says... Aziz says “it is unlikely any material unknown claims exist” against Holdings. I would love to receive the secured payment ($0.65/unit?) from MHY in the next few months.

 

 

MHY

 

Any guesses to size of additional allowed claims pool?

This seems to be largest variable left.

They hinted at D&O claims in the 16th report of the monitor.

Sure hope Quadrangle (who ate it on $45 million of unsecured sub notes) doesn't make trouble.

 

I am going to guess the secured creditors get their act together and settle disputes allowing payoff of secured debt by the end of this month. That would stop the clock ticking on interest and leave more for the unsecured claims.

 

Do you want to start a new topic on MHY? It might be easier to go back and forth.

[bskptkl]

Aziz says “it is unlikely any material unknown claims exist” against Holdings.

 

 

 

Read that - that's a relief

 

Read the proposed Claims Procedure Order.

 

They say Allowed Claims of Senior Noteholders would include principal and interest up to date of Initial Order - which is 9/29/2013.

That would mean roughly a $158 million claim, not the $204 million they say was owing in the 15th report. Is this what you mean by no additional interest accruing?

 

Also say Quadrangle gets Allowed Claim for Unsecured Sub Notes ($35 million principal) - but it is subject to Intercreditor Agreement which says they are subordiante to MHY's Unsecured Senior Notes. So I think we are safe there.

 

 

[Eye4Valu]

SHLD. Although Bruce doesn't consider this a speculation.

[bskptkl]

I believe that I saw that there is no additional interest accruing on any debt beyond the transaction date. As far as the CRO, he says... Aziz says “it is unlikely any material unknown claims exist” against Holdings. I would love to receive the secured payment ($0.65/unit?) from MHY in the next few months.

 

 

MHY

 

Any guesses to size of additional allowed claims pool?

This seems to be largest variable left.

They hinted at D&O claims in the 16th report of the monitor.

Sure hope Quadrangle (who ate it on $45 million of unsecured sub notes) doesn't make trouble.

 

I am going to guess the secured creditors get their act together and settle disputes allowing payoff of secured debt by the end of this month. That would stop the clock ticking on interest and leave more for the unsecured claims.

17TH Report Of The Monitor is out.

 

Good news - they seem to have settled issues with all known claimants.

First Lien notes will get $163.9 mm.

Second Lien notes will get $67.7 mm.

Payments will go out by the end of this month.

That leaves roughly $111 mm for the Unsecureds.

They will settle 2 other unsecured claims for $2.45 mm.

No payment on the Quadrangle Subordinate Unsecured Note.

[sculpin]

I believe that I saw that there is no additional interest accruing on any debt beyond the transaction date. As far as the CRO, he says... Aziz says “it is unlikely any material unknown claims exist” against Holdings. I would love to receive the secured payment ($0.65/unit?) from MHY in the next few months.

 

 

MHY

 

Any guesses to size of additional allowed claims pool?

This seems to be largest variable left.

They hinted at D&O claims in the 16th report of the monitor.

Sure hope Quadrangle (who ate it on $45 million of unsecured sub notes) doesn't make trouble.

 

I am going to guess the secured creditors get their act together and settle disputes allowing payoff of secured debt by the end of this month. That would stop the clock ticking on interest and leave more for the unsecured claims.

17TH Report Of The Monitor is out.

 

Good news - they seem to have settled issues with all known claimants.

First Lien notes will get $163.9 mm.

Second Lien notes will get $67.7 mm.

Payments will go out by the end of this month.

That leaves roughly $111 mm for the Unsecureds.

They will settle 2 other unsecured claims for $2.45 mm.

No payment on the Quadrangle Subordinate Unsecured Note.

Great news on MHY/MMF. Will spend weekend going over this Monitor Report. If you want to start another topic on MHY in the Investments section of CofB&H that would be fine with me.

[sculpin]

Potential Multibagger dependent on Near Term M&A Process

 

Legumex Walker - (TSX - LWP) currently trading at $1.00 Cdn has been in a strategic review process for about 5 months. They have 2 divisions

 

PCC Canola - this is a specialty canola crusher located in Washington State which has been an albatross around the Company's neck. It has defaulted on its loans and will result in $0 return to the parent Company. However its large debt does not have any claim to Legumex.

 

Specialty Crops - this is where the core value lies in LWP and which Raymond James (note below) and Cormark Securities (also below) estimate value return from $1.25 to $3 per share if the strategic sales process finds a willing buyer.

 

This is very speculative due to LWP's debt and dependence on the outcome of the strategic review. However, from the $1 level, speculators could realize multi bagger potential based on the quality of  LWP's attractive Specialty Crops business.

 

Raymond James.... (pdf attached)

 

Steve Hansen CMA, CFA | 604.659.8208 | steve.hansen@raymondjames.ca Daniel Chew CA (Associate) | 604.659.8238 | daniel.chew@raymondjames.ca Agribusiness

 

Weak 2Q15 Results (but Irrelevant); Company Still for Sale, Expect Update Soon

 

Recommendation

 

Legumex Walker’s tumultuous history as a public company is nearing an end, with a strategic sale increasingly likely in the coming weeks, in our view. Our fundamental assessment of the company’s Specialty Crops division—where all of the residual equity value lies—suggests a potential exit well above LWP’s current trading value. However, given the acute uncertainty surrounding recent events, and the potential for the sale transaction(s) to fall through, we rate the story Market Perform (vs. Under Review prior).

 

Analysis

 

 Company Still for Sale; Update Expected in the Coming Weeks—The most salient

takeaway from LWP’s 2Q15 results, in our view, was the clear message that: 1) the company is still for sale; and 2) that the process is likely to conclude in the coming weeks. Underscoring this message, we highlight that both the Special Crops and Oilseed Processing (PCC) segments have been reclassified as ‘discontinued operations’, with supporting disclosure that the assigned Special Committee ‘expects to provide an update in the coming weeks as the process nears completion’. With little equity value currently ascribed to PCC, we believe that the sale of Specialty Crops will be the key to unlocking value for LWP shareholders.

 

 Forbearance Received on AgCountry PCC Loan—In an odd twist, AgCountry has now provided forbearance on PCC’s senior credit facility, which is expected to allow the strategic sales process to continue. Unknown at this juncture, however, is what kind of damage was done to the sales process subsequent to AgCountry issuing a notice of demand on PCC’s senior credit facility on July 31, a move that sent LWP shares spiraling lower.

 

 Wide Range of Outcomes—As illustrated in the accompanying exhibit, we foresee a wide range of potential outcomes for LWP shareholders, with a potential sale of the company expected to generate somewhere between $1.25 and $3.00 per share.

 

Valuation

 

Our $2.00 target price is based on an 8.6x multiple applied to our 2015E Specialty Crops EBITDA estimate, a multiple that resides at the low end of LWP’s historical trading range (6.0x-15.0x), reflective of the company’s recent financial challenges and ongoing extended strategic review process.

 

Cormark....

Investment Thesis:

 

Legumex Walker consists of two ag-processing businesses. The special crops

processing business is among the most diversified players in Canada. The

canola crushing operation has significant logistical advantages, strong

partnerships, and substantial barriers to entry.

 

Highlights:

 

• Q2/15 Results; Strategic Review Ongoing

 

Q2/15 results were soft but not all that relevant given the ongoing strategic

review process, which is now heading into its fifth month. As a result of the

intention to sell both PCC and Special Crops, both segments have been

presented as discontinued operations, resulting in very messy disclosure. With

the quarter, the company announced that AgCountry has granted forbearance

on the PCC loan breach and that all other creditors have issued a similar

forbearance under cross default provisions. Despite these tensions abating, as

a result of the very challenging crushing environment expected to persist into

the foreseeable future, it is unlikely the company will recapture any equity

value from PCC, regardless of whether it defaults or is sold. The company

once again articulated a view that the PCC debt is non-recourse to Special

Crops, allowing the segment to be sold on an unencumbered basis. We

continue to believe that this asset has equity value, and notwithstanding a

stock price and financial position that renders the company with very little

negotiating leverage, believe this asset will be sold, likely shortly. We reiterate

a $2.50 target, based on now just Special Crops, and a Buy (S)

recommendation.

LWP_RJ.pdf

[Cardboard]

With PCC debt being non recourse, why the dramatic plunge the moment it was called? Is PCC having some strategic value to potential acquirers and now this makes it more expensive or complicated?

 

Cardboard

[sculpin]

With PCC debt being non recourse, why the dramatic plunge the moment it was called? Is PCC having some strategic value to potential acquirers and now this makes it more expensive or complicated?

 

Cardboard

 

The plunge after the PCC loan call was mostly optics I think along with the potential that they would not get relief on cross default triggers - they did. Many of the analysts assumed very little equity value for PCC to LWP prior to the default anyway. Perhaps the fact that LWP was trading as high as the $4's was the market was too optimistic about the valuation that LWP could get for both PCC and Specialty Crops - with the shares now around the $1 level perhaps the market has swung to far to the negative?

[yadayada]

I see 6.5m ebit by specialty crops division, but about 7m corporate costs. What will those be if the sell the other division? I dont really care about ebitda if they dont make a profit.

[DTEJD1997]

my goodness!

 

The market is starting to get interesting...

 

I'll throw out a speculative name (BDCO) Blue Dolphin Energy.

 

Pluses:

 

Good location

Off the radar

Could be "silly" cheap

Assets selling for WAY less than replacement cost

 

Negatives:

 

Potentially bad "marketing" relationships

Just released bad earnings

A microcap in an industry dominated by "big" players

Might have to invest a LOT more in physical plant

 

BDCO owns a very small refinery in TX.  It is in the Eagle Ford shale area and gets a good deal on oil as it does not have to be transported.  The refinery was built in late 70's? and was mothballed for 30 years.  They have been operating for a while and have MOST of the kinks worked out.  Have been making a LOT of money relative to share price.

 

Any thoughts on this one?

[sculpin]

my goodness!

 

The market is starting to get interesting...

 

I'll throw out a speculative name (BDCO) Blue Dolphin Energy.

 

Pluses:

 

Good location

Off the radar

Could be "silly" cheap

Assets selling for WAY less than replacement cost

 

Negatives:

 

Potentially bad "marketing" relationships

Just released bad earnings

A microcap in an industry dominated by "big" players

Might have to invest a LOT more in physical plant

 

BDCO owns a very small refinery in TX.  It is in the Eagle Ford shale area and gets a good deal on oil as it does not have to be transported.  The refinery was built in late 70's? and was mothballed for 30 years.  They have been operating for a while and have MOST of the kinks worked out.  Have been making a LOT of money relative to share price.

 

Any thoughts on this one?

 

So what are the numbers on this? Cash flow, mkt cap, debt level etc. Valuation? Replacement cost? Any hidden assets?

[sculpin]

I see 6.5m ebit by specialty crops division, but about 7m corporate costs. What will those be if the sell the other division? I dont really care about ebitda if they dont make a profit.

 

Acquirers use Ebitda multiple on acquisition. Corporate costs will be eliminated in the purchase by a strategic competitor. PCC will be divested to the primary lender.

[DTEJD1997]

my goodness!

 

The market is starting to get interesting...

 

I'll throw out a speculative name (BDCO) Blue Dolphin Energy.

 

Pluses:

 

Good location

Off the radar

Could be "silly" cheap

Assets selling for WAY less than replacement cost

 

Negatives:

 

Potentially bad "marketing" relationships

Just released bad earnings

A microcap in an industry dominated by "big" players

Might have to invest a LOT more in physical plant

 

BDCO owns a very small refinery in TX.  It is in the Eagle Ford shale area and gets a good deal on oil as it does not have to be transported.  The refinery was built in late 70's? and was mothballed for 30 years.  They have been operating for a while and have MOST of the kinks worked out.  Have been making a LOT of money relative to share price.

 

Any thoughts on this one?

 

So what are the numbers on this? Cash flow, mkt cap, debt level etc. Valuation? Replacement cost? Any hidden assets?

 

Wow:

 

How could I have forgot this?  Working too many hours I suppose....

 

The numbers are the prime thing that makes this attractive:

 

Trailing P/E is 3.67

P/B is 1.3

Market cap is $44 million

EBITDA is 10.04 million

P/S is .15

EV/EBIDTA is about 7

 

Another interesting thing is that they've got physical plant and equipment that they got out of mothballs for literally pennies on the dollar.

 

They also kind of operate in a protected niche...they get oil at a discount as they save on transportation costs and use different feedstock than the gulf refiners.

 

They have borrowed a lot of money compared to their market cap to buy more physical plant and expand their operations.  They also refinanced some existing debt.  Thus they have had a LOT of capital expenditures.

 

They also had 4 more days of downtime compared to a year ago period.  This certainly impacted operations to some degree.

 

So here is how I can see things working out:

 

A). Management expands their plant, allowing them to increase diesel output, and other higher value products.  They also improve capacity & reliability somewhat.

 

B). They get a year or so of decent to "good" operations.  Use that cash flow to expand & improve operations.  They also use a chunk of that to pay down debt & solidify the balance sheet.

 

C). After a couple of decent years, they could either sell to a larger player OR maybe start paying a dividend.

 

If the stock has solidified the balance sheet, improved operations and is earning $2/share, the stock is certainly NOT going to trade for $4.

 

THUS THIS IS A POSSIBLE MULTI-BAGGER POSSIBILITY

[yadayada]

What about this?

http://www.economist.com/news/business-and-finance/21661209-treating-mexican-oil-if-it-were-canadian-overdue-breach-americas-archaic-oil-export

 

I know next to nothing about  the refining industry though.

[sculpin]

Finally! Some cash coming back to the Marret holders...

 

Marret High to pay 44.61-cent distribution Sept. 25

 

 

2015-09-11 17:19 ET - News Release

 

 

An anonymous director reports

 

MARRET ASSET MANAGEMENT ANNOUNCES DISTRIBUTION FOR MARRET HIGH YIELD STRATEGIES FUND

 

Marret High Yield Strategies Fund will pay a distribution of 44.61 cents per unit to unitholders of record on Sept. 22, 2015, with a payment date on Sept. 25, 2015. Pursuant to the sale of Mobilicity to Rogers Communications, the fund received cash payment for certain bonds issued by Data & Audio-Visual Enterprises Wireless Inc., operating as Mobilicity. The distribution represents the net proceeds received by the fund and is being made in accordance with the ongoing termination of the fund.

 

In accordance with the applicable rules of the Toronto Stock Exchange ("TSX") the "due bill" trading procedures of the TSX will apply to the distribution. The units of the fund will trade on a "due bill" basis from two trading days prior to the Distribution Record Date (i.e., September 18, 2015) to the Payment Date, inclusively (the "due bill period"). Any trades that are executed on the TSX during the due bill period will be identified to ensure purchasers of the fund's units receive the entitlement to the distribution.

 

The units will commence trading on an ex-dividend basis on September 28, 2015, as of which date purchases of units will no longer have an attaching entitlement to the distribution. The due bill redemption date will be September 30, 2015.

 

Marret expects to receive additional proceeds for certain other Mobilicity bonds held by the fund; however, the final determination on payment has not yet been made.

 

Marret Multi-Strategy to pay 40.71-cent distribution

 

 

2015-09-11 17:18 ET - News Release

 

 

Mr. Barry Allan of Marret Asset Management reports

 

MARRET ASSET MANAGEMENT ANNOUNCES DISTRIBUTION FOR MARRET MULTI-STRATEGY INCOME FUND

 

Marret Multi-Strategy Income Fund will pay a distribution of 40.71 cents per unit to Class A unitholders of record on Sept. 22, 2015, with a payment date of Sept. 25, 2015. Pursuant to the sale of Mobilicity to Rogers Communications, the fund received cash payment for certain bonds issued by Data & Audio-Visual Enterprises Wireless Inc., operating as Mobilicity. The distribution represents the net proceeds received by the fund and is being made in accordance with the ongoing termination of the fund.

 

In accordance with the applicable rules of the Toronto Stock Exchange ("TSX") the "due bill" trading procedures of the TSX will apply to the distribution. The units of the fund will trade on a "due bill" basis from two trading days prior to the Distribution Record Date (i.e., September 18, 2015) to the Payment Date, inclusively (the "due bill period"). Any trades that are executed on the TSX during the due bill period will be identified to ensure purchasers of the fund's units receive the entitlement to the distribution.

 

The units will commence trading on an ex-dividend basis on September 28, 2015, as of which date purchases of units will no longer have an attaching entitlement to the distribution. The due bill redemption date will be September 30, 2015.

 

Marret expects to receive additional proceeds for certain other Mobilicity bonds held by the fund; however, the final determination on payment has not yet been made.

 

There is no guarantee the Toronto Stock Exchange will permit the fund to maintain its listing. Please consult with your tax advisor on the possible consequences if the fund is delisted.

[NewbieD]

Avtech (avtech.aero): Software company. Optimisation of flight paths based on weather data. Currently in a test contract with all of Southwest Airlines planes as well as some other smaller airlines. Seems to have the best tech for this since the only competitor Boeing lost out on the Southwest contract. A lot of oil is saved (~100 kg/flight) which means economic value is big and with a small fixed cost base the return will be big if the tech gains widespread use which I find likely.

 

Effnetplattformen (effnet.com): Has an IP in header compression algorithms that are a small part of the VoLTE and VoHSPA protocols which are currently being rolled out on cellular networks across the globe. Almost all major mobile chipset players are customers (Intel,Qualcomm,Cisco,Alcatel,NEC etc). Last quarter showed royalties have started to increase and very likely more to come. Growth in VoLTE is expected to be 123% CAGR coming 4 years (http://www.transparencymarketresearch.com/pressrelease/lte-market.htm). Valuation is ~EBIT/EV 15 on current year. Also trackrecord of very succesful M&A.

[jawn619]

I think Emeco Holdings counts as a speculative idea right now. Scyamore networks SCMR is another.