DC.A.TO - Dundee Corp

[Liberty]

I remember seeing this around 2011-2012. Didn't think about it since, but saw someone mention it today on Twitter. Wow, down from $20 to $1.

[grandmasterG]

this is getting interesting again:

not many people are following this company anymore since the value destruction of the past, but they are missing the turnaround that started at the beginning of 2018 when Jonathan Goodman, son of Ned, returned to the company and became ceo. He started cleaning up and simplifying the portfolio, cut costs dramatically and in two years the number of investments was reduced from over 100 to below 30, and corporate expenses reduced from $ 25M to $ 12M. He also bought back preferred shares at a discount, reducing debt.

At the end of 2019, the shares were still trading around $ 1, at a huge discount to their NAV of $ 4.28 per share.

Now this week Dundee announced that they are selling roughly half their stake in Dundee Precious Metals, with an option to sell most of the rest in the coming year at $ 8  per share. This action gives Dundee now $ 152M and possibly another $ 95M in the coming 12 months, and their market cap today is $ 119 M and their enterprise value $ 244 M !

so this means they now get more than their entire market cap in cash! they will probably use a big part of that cash to buy back ordinary and preferred shares at a big discount, and this way they can easily increase NAV per share

 

still the market hasn't responded much to this news, but I expect this to change in the coming months as people realize what an interesting move this is, and how cheap the share price is today

[petec]

this is getting interesting again:

not many people are following this company anymore since the value destruction of the past, but they are missing the turnaround that started at the beginning of 2018 when Jonathan Goodman, son of Ned, returned to the company and became ceo. He started cleaning up and simplifying the portfolio, cut costs dramatically and in two years the number of investments was reduced from over 100 to below 30, and corporate expenses reduced from $ 25M to $ 12M. He also bought back preferred shares at a discount, reducing debt.

At the end of 2019, the shares were still trading around $ 1, at a huge discount to their NAV of $ 4.28 per share.

Now this week Dundee announced that they are selling roughly half their stake in Dundee Precious Metals, with an option to sell most of the rest in the coming year at $ 8  per share. This action gives Dundee now $ 152M and possibly another $ 95M in the coming 12 months, and their market cap today is $ 119 M and their enterprise value $ 244 M !

so this means they now get more than their entire market cap in cash! they will probably use a big part of that cash to buy back ordinary and preferred shares at a big discount, and this way they can easily increase NAV per share

 

still the market hasn't responded much to this news, but I expect this to change in the coming months as people realize what an interesting move this is, and how cheap the share price is today

 

There is a fairly extensive and up-to-date discussion of this, but it is in the "wrong place" (look for the Dumbdee thread in the General Discussions section).

 

Sanjeev, any chance you could merge the threads?