no_free_lunch Posted November 19, 2014 Share Posted November 19, 2014 Welcome to the board kab60. I was in hlc but sold out recently. It is not overpriced but I got handed a strong gain so quickly I couldn't resist taking the money. Anyways, I am in the same boat of comparing the different companies and am leaning toward clarke. I just like the optionality myself. He has cash, he has the different positions, there is a discount to book so he can buy shares, if things go south he can effect change or even make money in a bankruptcy, he could do other deals, etc. Just my 2 cents, I am also more of a risk-averse investor so all of the above really appeal to me. Link to comment Share on other sites More sharing options...
kab60 Posted November 19, 2014 Share Posted November 19, 2014 Welcome to the board kab60. I was in hlc but sold out recently. It is not overpriced but I got handed a strong gain so quickly I couldn't resist taking the money. Anyways, I am in the same boat of comparing the different companies and am leaning toward clarke. I just like the optionality myself. He has cash, he has the different positions, there is a discount to book so he can buy shares, if things go south he can effect change or even make money in a bankruptcy, he could do other deals, etc. Just my 2 cents, I am also more of a risk-averse investor so all of the above really appeal to me. Thanks for the welcome, no_free_lunch. Anything else that made you drop the HLC shares? I still think it seems quiet cheap, even though I think the debt level is quiet high. Did that bother you? If they can keep the cash flow up, they should be able to reduce it quiet a bit, but I'm not really sure whether that'll be the case. Any idea if they're very reliant on the activities in the tar sands in Alberta? And thanks for the info on the insider selling, doc75. I did follow their buyback of shares but didn't see that anyone dumped a big portion. Link to comment Share on other sites More sharing options...
no_free_lunch Posted November 19, 2014 Share Posted November 19, 2014 It is just not as much of a no-brainer now but it is still cheap. I am not worried about the impact on oil & gas prices as even if they stay depressed it will be as a result of continued drilling in North America. The oil industry won't make as much money but people will still be staying in hotels. Also they are very diversified across the country which will buffer any slowdown out west. I have a theory that if O&G slows down, the Canadian dollar will get whacked. If the canadian dollar weakens, then the east will pick-up as it's more manufacturing based. HLC has a lot of hotels out east. Also the weaker canadian dollar will support the west with their commodity exports. It is just tempting to buy HLC even cheaper via CKI. Link to comment Share on other sites More sharing options...
LesPaul Posted November 19, 2014 Share Posted November 19, 2014 Updated corporate presentation is available at Clarkeinc.com Share count has also been updated as of November 18 2014: 19,652,991 Link to comment Share on other sites More sharing options...
bizaro86 Posted November 19, 2014 Share Posted November 19, 2014 Updated corporate presentation is available at Clarkeinc.com Share count has also been updated as of November 18 2014: 19,652,991 This presentation has a note they've entered into an agreement to sell the MV Shamrock, which I don't recall seeing in previous presentations. Link to comment Share on other sites More sharing options...
LesPaul Posted November 19, 2014 Share Posted November 19, 2014 Updated corporate presentation is available at Clarkeinc.com Share count has also been updated as of November 18 2014: 19,652,991 This presentation has a note they've entered into an agreement to sell the MV Shamrock, which I don't recall seeing in previous presentations. Thanks Bizaro, I didn't catch that in the first glance through. More trades today. I believe I saw a approx. 147,000 share trade go through around 10:30AM today. I am curious to see what's going on. Link to comment Share on other sites More sharing options...
Pauly Posted November 19, 2014 Share Posted November 19, 2014 Updated corporate presentation is available at Clarkeinc.com Share count has also been updated as of November 18 2014: 19,652,991 This presentation has a note they've entered into an agreement to sell the MV Shamrock, which I don't recall seeing in previous presentations. It's mentioned in the latest MD&A in the Transportation Segment section. Basically, they bought the ship at a tax lien auction 10 years ago, the day rates for shipping have never really recovered since the financial crisis, so they've decided to sell (for $4.8 mil) and use the cash elsewhere. The sale is expected to finalize in the fourth quarter. Link to comment Share on other sites More sharing options...
doc75 Posted November 20, 2014 Share Posted November 20, 2014 More trades today. I believe I saw a approx. 147,000 share trade go through around 10:30AM today. I am curious to see what's going on. Colour me curious, too. Today it was an insider purchase of 144,500 shares. http://www.tmxmoney.com/TMX/HttpController?GetPage=SearchInsiderTrade&Language=en&Submit=Submit&QuerySymbol=cki&x=-765&y=-447 I've never really understood how these block transfers work. My guess is that we're seeing another transfer from one Armoyan vehicle to another. (ie. sale by Geosam and purchase by X) Can anyone explain to me how such large block trades would go through the market? That is, if it is a inter-Armoyan transfer (as has happened in the past), what is the benefit of having it clear through the market? Why isn't it just a private sale? And can Clarke repurchase large blocks of shares outside of their NCIB? Link to comment Share on other sites More sharing options...
EliG Posted November 20, 2014 Share Posted November 20, 2014 Can anyone explain to me how such large block trades would go through the market? That is, if it is a inter-Armoyan transfer (as has happened in the past), what is the benefit of having it clear through the market? Why isn't it just a private sale? I'm guessing that a block trade is cheaper/quicker than a private sale. I believe that prearranged block trades bypass the market, but they still print the tape. The price of the block trade can be outside of the current bid/ask. And can Clarke repurchase large blocks of shares outside of their NCIB? They can definitely use block trades to repurchase large blocks of shares. I believe they are still subject to the annual NCIB limit. Link to comment Share on other sites More sharing options...
xtreeq Posted November 20, 2014 Share Posted November 20, 2014 Clarke Inc. Announces Normal Course Issuer Bid http://www.newswire.ca/en/story/1449595/clarke-inc-announces-normal-course-issuer-bid Link to comment Share on other sites More sharing options...
EliG Posted November 21, 2014 Share Posted November 21, 2014 I've been watching Clarke buy their 5400 shares per day as of late. I checked today because of the huge volume spike and was surprised to see a very large insider sell (174200 shares, $1.8m worth). http://www.tmxmoney.com/TMX/HttpController?GetPage=SearchInsiderTrade&Language=en&Submit=Submit&QuerySymbol=cki&x=-765&y=-447 I'm curious to see the nature of this transaction when it's posted on SEDI. From today's INK Research report: Potter, Carl Blackadar sold 200K shares on Nov 18. Price: $10.50 - $10.73 Potter is a 10%+ holder. He is not an insider. Clarke Management Information Circular May 16, 2014: "Mr. Potter owns 9,000 common shares directly and has control or direction over 2,087,700 common shares through 3223599 Nova Scotia Limited and 500 Ventures Limited." Link to comment Share on other sites More sharing options...
Guest Quebec Posted November 21, 2014 Share Posted November 21, 2014 Clarke just sold its Supremex position. http://web.tmxmoney.com/article.php?newsid=71808028&qm_symbol=SXP&mobile=false Going back into recent discussion on choosing between CKI or its positions, I chose CKI. I was holding Sherritt but switched into CKI earlier this year. They did great with that, riding from about 3.00 to 4.75 . Its back arpund 2.65 now.. Excellent timing/ judgement. I bougth some HLC later but eventually switched these funds back into more CKI. I trust they know better when to hold and when to fold. I get the portfolio at a discount along with their investees caring. Imagine doing copycat into Spyglass... Edit: price of SXP shares sold was $2.70 ( below recent trading price ) Link to comment Share on other sites More sharing options...
Guest Quebec Posted November 21, 2014 Share Posted November 21, 2014 I've been watching Clarke buy their 5400 shares per day as of late. I checked today because of the huge volume spike and was surprised to see a very large insider sell (174200 shares, $1.8m worth). http://www.tmxmoney.com/TMX/HttpController?GetPage=SearchInsiderTrade&Language=en&Submit=Submit&QuerySymbol=cki&x=-765&y=-447 I'm curious to see the nature of this transaction when it's posted on SEDI. From today's INK Research report: Potter, Carl Blackadar sold 200K shares on Nov 18. Price: $10.50 - $10.73 Potter is a 10%+ holder. He is not an insider. Clarke Management Information Circular May 16, 2014: "Mr. Potter owns 9,000 common shares directly and has control or direction over 2,087,700 common shares through 3223599 Nova Scotia Limited and 500 Ventures Limited." M. Potter seems involved in the construction business in Nova Scotia, much like M. Armoyan. A few real estate co's related to him. He got shareholding above the 10% threshold around 2010. Hopefully Clarke is there to buy back as much as he wants to divest Link to comment Share on other sites More sharing options...
EliG Posted November 21, 2014 Share Posted November 21, 2014 Carl Potter is the owner of Dexter Construction, according to this fire report. http://thechronicleherald.ca/novascotia/97750-fire-destroys-garage-at-former-haddon-hall-resort-in-chester Dexter is the largest civil contractor in Atlantic Canada. http://www.dexter.ca/companies/dexter-construction Link to comment Share on other sites More sharing options...
doc75 Posted November 21, 2014 Share Posted November 21, 2014 Clarke just sold its Supremex position. http://web.tmxmoney.com/article.php?newsid=71808028&qm_symbol=SXP&mobile=false Going back into recent discussion on choosing between CKI or its positions, I chose CKI. I was holding Sherritt but switched into CKI earlier this year. They did great with that, riding from about 3.00 to 4.75 . Its back arpund 2.65 now.. Excellent timing/ judgement. I bougth some HLC later but eventually switched these funds back into more CKI. I trust they know better when to hold and when to fold. I get the portfolio at a discount along with their investees caring. Imagine doing copycat into Spyglass... Thanks for pointing this out. Very interesting. Supremex seems to be doing very well, so I'm happy to think they see better opportunities elsewhere. I assume CKI wants to maintain its dividend, but dropping the Supremex position will cut down on their cash flow substantially. Link to comment Share on other sites More sharing options...
Myth465 Posted November 21, 2014 Share Posted November 21, 2014 The entire Canadian market just took a 10%-30% hit. Good move, plenty of good opportunity out there. Love the move Clarke is making. Link to comment Share on other sites More sharing options...
sculpin Posted November 21, 2014 Share Posted November 21, 2014 http://alphavulture.com/2014/11/20/clark-inc-the-canadian-icahn-at-a-discount/?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+AlphaVulture+%28Alpha+Vulture%29 Link to comment Share on other sites More sharing options...
writser Posted November 21, 2014 Share Posted November 21, 2014 Clarke just sold its Supremex position. http://web.tmxmoney.com/article.php?newsid=71808028&qm_symbol=SXP&mobile=false Going back into recent discussion on choosing between CKI or its positions, I chose CKI. I was holding Sherritt but switched into CKI earlier this year. They did great with that, riding from about 3.00 to 4.75 . Its back arpund 2.65 now.. Excellent timing/ judgement. I bougth some HLC later but eventually switched these funds back into more CKI. I trust they know better when to hold and when to fold. I get the portfolio at a discount along with their investees caring. Imagine doing copycat into Spyglass... Edit: price of SXP shares sold was $2.70 ( below recent trading price ) Thanks for the update. If you don't mind - where did you get the price? Link to comment Share on other sites More sharing options...
Guest Quebec Posted November 21, 2014 Share Posted November 21, 2014 Thanks for the update. If you don't mind - where did you get the price? http://web.tmxmoney.com/article.php?newsid=71806925&qm_symbol=SXP&mobile=false It was reported in canadian insider as well today under SXP. Edit: that 2.70$ is for the 2M shares to Zucker. The price for the balance is unspecified yet afaik Link to comment Share on other sites More sharing options...
EliG Posted November 21, 2014 Share Posted November 21, 2014 The trust bought 2M shares from Clarke at $2.70. Clarke sold 12.8M shares in total. We don't know whether they got the same price for all of their shares. I would guess - yes. Link to comment Share on other sites More sharing options...
sbalsam Posted November 21, 2014 Share Posted November 21, 2014 The filing is in on SEDI showing that the shares were sold for $2.905. This is likely the average price. Steve Link to comment Share on other sites More sharing options...
Guest Quebec Posted November 21, 2014 Share Posted November 21, 2014 The filing is in on SEDI showing that the shares were sold for $2.905. This is likely the average price. Steve thanks Steve and Eli for pointing this out. I should have been more careful. out of curiosity, do we know who bought the 10M shares? Link to comment Share on other sites More sharing options...
FFHWatcher Posted November 21, 2014 Share Posted November 21, 2014 Do we know ACB of Supremex for Clarke Inc? I see they purchased some for just over $1. and had a $1.20 privatization on the table back in March 2013 but they have owned since at least 2007 Link to comment Share on other sites More sharing options...
Pauly Posted November 21, 2014 Share Posted November 21, 2014 So this sale gives them another ~$37 million in cash for a total now of almost $80m. I assume they wouldn't have given up Supremex's nice dividend payment without a plan for that cash. I'm nervously excited to see where it's going...I sure hope I'm not disappointed...though I haven't been so far. Any guesses? Link to comment Share on other sites More sharing options...
Guest Quebec Posted November 21, 2014 Share Posted November 21, 2014 Any guesses? My guesses are : 1- buyback some big blocks of Clarke shares, maybe from M.Potter who just sold a chunk of his 10% position at around 10.50$. 2- if they really like Spyglass assets, it's on sale at a fraction of recent prices. Link to comment Share on other sites More sharing options...
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