Stockchase Opinions

Douglas Kee DH Corporation DH-T COMMENT Jan 05, 2017

He looked at this about 18 months ago. They were moving from writing cheques in Canada and into more interesting stuff in the US. Unfortunately, that didn’t work out, in the short term anyway. They took a hit and they cut their dividend. The bloom is kind of off this for now. He is not interested. Dividend yield of 5.8%.

$22.050

Stock price when the opinion was issued

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COMMENT

This has been a disappointment. In terms of their new entry into FinTech, it has had some disappointing results. At the current price level, he feels it is reasonably valued. This is more of a “show me” story at this point.

COMMENT

He bought more when it fell because it was massively discounted. Also, management gave very poor guidance about what was happening to a lot of their businesses. Feels their core businesses really has good opportunities on the FinTech side, in the US specifically, and the stock can slowly go up. Pays a decent yield.

COMMENT

Being acquired by Vista Equity at $25.50 a share. They had some serious issues the last quarter where they missed badly. However, overall, it was a pretty good company. He would be inclined to take the offer and move on.

HOLD

Before the takeover offer, the stock was not doing very well. The company put themselves up for sale and only one bidder came along. There is still time because the deal has not been finalized.

PAST TOP PICK

(Top Pick Feb 17/16, Down 17%) They are effectively being taken out. He liked what they were acquiring. The problem was their execution failed and they bought acquisitions through debt. It was a bit of a miss.

SELL

It was a short in the past. You are looking at a merger arbitrage trade. It is the time value now.

COMMENT

Being acquired at $25.30 a share. It doesn’t look like there is going to be anybody else coming in and paying a higher price. If you have another idea, then you could sell it right now and move on.

COMMENT

There was a big drop off that took place in late 2016, and then it partially recovered. He understands that they are in the middle of talks for a buyout, with the price being close to where it is right now. There is not a lot of potential.

PAST TOP PICK

(Top Pick Feb 17/16, Down 19.76%) It fell apart and was acquired. They fell apart integrating their US acquisitions. They are no longer a public corp.

PAST TOP PICK

(A Top Pick Feb 17/16. Down 20%.) This got privatized.