challenge everything
I love the weekend because it’s the only time of the week when I don’t lose money in the stock market.
Q1 results are out, time for some short follow-up.
Bed Bath & Beyond (NASDAQ:BBBY) went bust, and many other unprofitable companies should follow suit, but it’s a good start.
Bitcoin still costs 27k tethers, so, I think, we are far from the bottom but definitely closer since my previous post: Bloodbath and Beyond.
An interesting article on BBBY: The United States of Bed Bath & Beyond.
Ok, moving on.
Continue reading “WeBankrupt™”
A long time ago (well, pre-covid, lol), when I was an even worse investor than now, I bought shares of Invesque Inc. (TSX:IVQ, TSX:IVQ.U), which was paying some fat dividends back then.
Invesque is a North American health care real estate company with an investment thesis focused on the premise that an aging demographic in North America will continue to utilize health care services in growing proportion to the overall economy
Pandemic hit them hard, dividends were cut to zero, the share price was decimated, and in the end, it is an RE company but not REIT, they are not obliged to pay dividends, so they are still not paying them.
Thus, the share price is hovering around C$1, while it was C$9 before, while they are selling assets and trying to fix their debt problems.
Continue reading “Invesque Inc. debentures”
Failing banks, subsequent bank runs and bailouts in the US reminded me that not so long ago a bank run happened to one Canadian publicly traded bank: Home Capital Group Inc. (TSX:HCG)
Continue reading “Home Capital Group Inc. and a Risk Arbitrage”
While some people are arguing whether what happened to Silicon Valley Bank was a bailout or not, I would like to post a little update on the stocks I follow and the bailouts that some of them have received. 🙂
Continue reading “You get a bailout!”
I’m speculating here, but the recent cybersecurity incident at Indigo might not be so recent.
It just so happens that I purchased a book from the Indigo website a few weeks ago, and they were already experiencing issues:
1. I ordered to pick up the book in store, but I didn’t receive any email notification on pickup day, and my order status got stuck at “Shipping Pending”;
2. I have cancelled the order and was planning to re-order again from Amazon;
3. The next day, an employee from the Indigo store called and told me that my book was ready for pick up, and I had never been notified about that because there were some problems with their system;
4. I picked up my book, but my credit card has still not been charged two weeks later;
5. There have been no unusual charges either. 🙂
Good book, btw.
Guys from Goodfood (TSX:FOOD) are getting creative.
They issued C$12.65 million in new debentures with a 12.5% interest rate, C$10 million of which were purchased by Investissement Québec, aka my taxes.
Debentures have a C$0.75 conversion rate (share dilution) and an interest that converts into shares (more share dilution) at a market price plus 50% premium in the first 2 years.
In my humble opinion, it looks like La Belle Province is propping up this unprofitable business by giving them $10m and charging “nothing” for 2 years.
This extra $10m will buy FOOD some more time, but 12.5% interest is crazy expensive.
Continue reading “Goodfood Market and Beyond”
Clean the Slate website is down at the moment, probably because of the broken SSL certificate.
Let’s hope it will be up again; otherwise, it looks suspicious.
Luckily, I have saved their presentation… twice. 🙂
And funny enough, these two versions are slightly different.
Old version: SOT Presentation
New version: SOT Presentation (11-29-2022)
The differences are:
Am I too paranoid checking all these small details? 😀
Well, it’s the end of the year, and I can post a quick update on stocks and finally boast about my investment achievements.
Also, must admit that this text is still written by me and not by ChatGPT, so typos and mistakes are all mine.
Let’s go.
Continue reading “Bloodbath and beyond”
While it’s funny to watch how prices on stocks, houses, cars, and everything else (especially crypto garbage) are crashing, I keep asking myself, “Where is the bottom?”
I’m basically 50% cash at the moment, and it’s burning my pocket, even with 3%+ interest rates on Savings account.
Patience is a Virtue. 😀
On a side note, I have 6 posts in Drafts, and I’m too lazy to finish them, so I’m writing this one instead…
While I’m enjoying my vacation, things are moving fast with Slate Office REIT and I barely have time to follow the news.
Lots of things have happened since my initial post on SOT.UN:
Continue reading “Slate Office REIT, it gets confusing…”
As a result of a breach of a covenant under our credit facilities in the fourth quarter, the Company entered
into a tolerance letter with its lenders in the fourth quarter, which restricts us from using the revolver portion
of the facilities, under which no amount is currently outstanding. At year-end, the Company had $38 million
of cash and cash equivalents and no amounts drawn from the revolver. Goodfood is in the process of
pursuing a revised credit facility arrangement. There can be no assurance as to such an arrangement being
put in place and in a timely manner, or the terms of such an arrangement.
Source: Goodfood Provides Strategic and Financial Update
But there is more:
As a result, we are announcing that we have or will be closing all our MFCs
and the shut down of our wider 30-minute on-demand offering.
So, apparently on-demand groceries are not in the plans for long-term growth any more.
Management was telling a completely different story at the beginning of 2022.
FOOD is left with just 2 distribution centers, C$38M in cash, and they are about to lose lots of customers.
Inflation is high, interest rates are rising… Bankruptcy is the most likely outcome for Goodfood Market.
My first purchase of Vermilion Energy Inc. (TSX:VET, NYSE:VET) shares was in the second half of 2019 at around C$27.
I was chasing yield (whoa, 15% dividends!) and didn’t read financial reports (debt, what debt?).
Basically, I sucked at stock investments back then even more than I suck now. The timing was very bad, and COVID with lockdowns was just 8 months away.
My 15% dividends turned into 0% and the stock price dropped to as low as ~C$3 in the middle of 2020.
Slate Office REIT (TSX:SOT.UN) is a dismal Real Estate company that has been happily and methodically destroying shareholders’ value since going public.
Just take a look at the stock price chart:
In March 2019, I purchased Cascades Inc. (TSX:CAS) stock for the first time.
Back then, I didn’t read financial reports and was just chasing yield or buying stock because I liked the company.
In general, I was doing lots of stupid things. 🙂
The company is quite well-known; you can see the Cascades logo in lots of places: on food packaging, in public bathrooms, on cardboard boxes and etc. That was a good enough reason for me to buy their shares.
So, I’ve purchased some at a price of $8.36.
Cascades Inc. is a Canadian company. All the prices are in Canadian dollars unless otherwise specified.
Continue reading “Cascades Inc., over promise and under deliver”
A quick update on this money-losing machine since my initial post about Goodfood.
In Q3 2022, I expected Goodfood Market (TSX: FOOD) to have a smaller loss (compared to Q2) and lower revenue.
Smaller loss because they fired some staff.
Smaller revenue, because they are losing subscribers.
Revenue was ~C$67M, compared to ~C$73M in Q2, which is lower.
The loss was ~C$21M, compared to ~C$22M, which somehow stayed almost the same.
