sculpin

GMP.PR.B - T 0.8 12.75 · 12.80 0.5 12.75 GMP.PR.C - T 0.6 12.37 · 13.45 0.8 12.30 Would be very good for the GMP prefs as well (above)... TD Bank among the bidders for Richardson GMP RITA TRICHUR, ANDREW WILLIS AND NIALL MCGEE The Globe and Mail Published Tuesday, Sep. 06, 2016 5:00AM EDT Last updated Tuesday, Sep. 06, 2016 5:17AM EDT Wealth management firm Richardson GMP Ltd. is on the auction block with at least one major Canadian bank, Toronto-Dominion Bank, among the bidders, according to people familiar with the sale process. TD, Canada’s second-largest bank by assets, made it past the second round of bidding, one of those people said. It isn’t clear how much TD offered for the asset or whether the process will result in a definitive deal. The auction process, however, has attracted other interested parties including a second domestic bank, that person added. Richardson GMP is one of the largest Canadian independent wealth management companies, with $27.2-billion in assets under administration (AUA) as of June 30. A sale of the company could fetch in excess of $500-million, according to Scotia Capital Inc. It would also mark the latest in a wave of transactions that has resulted in independent wealth-management companies being acquired by new owners. Although Richardson GMP is small in comparison with the retail brokerage firms owned by the major banks, its focus on high-net-worth clients makes it a valuable asset. Fees from wealthier clients are more lucrative and the overhead is lower than it is at mass-market brokers with less affluent customers. Richardson GMP has the second-highest AUA per adviser in Canada, at $137-million, trailing only Royal Bank of Canada. Other bidders in the auction include two American players: San Francisco-based bank Wells Fargo & Co. and Raymond James Financial Inc. Raymond James has been in the financial advisory business in Canada for 15 years and recently made a deal to acquire MacDougall MacDougall & MacTier Inc., known as 3Macs. Once that acquisition is completed, Raymond James will have more than 400 advisers and portfolio managers in the country. Wells Fargo does not offer retail financial services in Canada, but does have a banking business that caters to mid-market and large companies out of offices in Vancouver, Calgary, Toronto and Montreal. "We don't comment on rumour or speculation," a TD spokeswoman said in an email late Monday night. A Wells Fargo spokesperson declined to comment, and GMP Capital also declined comment, citing a company policy to decline comment on market speculation. TD is the only one of the Big Six Canadian banks not to have made a large acquisition in the full-service retail brokerage sector. Deals done in the past by Canadian banks include RBC acquiring Dominion Securities, Bank of Nova Scotia taking over McLeod Young Weir and Canadian Imperial Bank of Commerce buying Wood Gundy and the retail brokerage arm of Merrill Lynch. In the late 1990s and early 2000s, TD instead focused on building its online brokerage business, making acquisitions that gave it a market-leading position in Canada and a 42-per-cent stake in TD Ameritrade Holding Corp. in the United States. TD chief executive officer Bharat Masrani, who assumed the top spot in November, 2014, has been relatively quiet on the acquisition front. But during the bank’s quarterly earnings call last month, he expressed a willingness to do tuck-in deals. With its sizable balance sheet and strong capital levels, TD would be able to digest an acquisition the size of Richardson GMP quite easily. Earlier this year, Scotia Capital Inc. analyst Sumit Malhotra wrote an in-depth report exploring the possible outcomes of a sale process at Richardson GMP, estimating it could be sold for roughly $530-million, which would value it at about 2 per cent of assets. Richardson GMP was created in 2009, when GMP Capital Inc. fused its wealth management arm with Winnipeg-based Richardson Partners Financial. GMP and Richardson Partners each own about 30 per cent, with the firm’s retail advisers owning the remaining 40 per cent. This November, a so-called “liquidity mechanism” kicks in that allows any of the three major shareholder groups to officially put Richardson GMP in play. Some on Bay Street have speculated the asset could be sold before that. Although Richardson GMP is not a public company, its consolidated financial results are disclosed by GMP Capital. In the six months ended June 30, the firm earned profit of $4.5-million on revenue of $130-million. Its assets under administration declined by 1.8 per cent from a year earlier. This year has brought a number of takeovers in the wealth management sector. In addition to the Raymond James deal for 3Macs, Echelon Wealth Partners Inc. bought Dundee Goodman Private Wealth, the retail brokerage arm of Dundee Corp., for $13.5-million.

From Stockwatch and a new September presentation from Zargon post Sask asset sale. http://zargon.ca/wp-content/uploads/2016/09/Zargon-Corporate-Update-Sept-1-2016-final.pdf Zargon Oil & Gas Ltd. (ZAR) added two cents to 96 cents on 215,000 shares, after closing one asset sale and arranging another. The first sale involved all of its assets in southeast Saskatchewan. These are producing around 1,200 barrels of oil equivalent a day, and Zargon announced in late July that it would sell them for $89.5-million to an unidentified buyer that turned out to be TORC Oil & Gas Ltd. (TOG: $7.80). Both companies have now put out separate press releases announcing the closing of the sale. Zargon's press release added that another set of assets is being sold, this time in the Killam area of Alberta. These assets produced 133 barrels a day in the first half of the year (58 per cent oil and liquids) and will be sold for $4-million, with an effective date of Aug. 1 and an expected closing date in mid-September. Both sales are part of Zargon's "strategic alternatives process," a euphemism used by companies that are putting themselves and their assets up for sale. Zargon started the process just over a year ago. At the time, it had about $112-million in debt, including $51-million drawn on a $110-million credit facility. Over the months, the amount of the facility was chopped down while the drawn amount crept up, so that as of late June, 2016, Zargon was nearly $65-million drawn on a line that was just $70-million. That was apparently a good incentive for the alternatives process; the Saskatchewan asset sale was announced just a month later. Now the Killam assets are being sold as well. The two sales will remove nearly 1,350 barrels a day, or roughly one-third of Zargon's production, but will eliminate all bank debt and leave a tidy sum of cash. The company cannot rest easy yet, however. It still faces the maturity of $57.5-million in convertible debentures next June. As well, its credit facility is going to be reduced again as a result of the asset sales. The review date for the facility is Sept. 22. President and chief executive officer Craig Hansen told Stockwatch that liquidity remains a key issue for Zargon. He noted that the company has about $26-million in available cash, and that if oil prices rise to around $47 (U.S.), the company will not need to draw on any of that cash for its second-half program. The program currently includes $1.8-million for polymer injections at the first phase of the core Little Bow ASP (alkaline surfactant polymer) project. This is producing a little under 600 barrels a day and is currently forecast to stay stable for a few quarters. If oil prices rise, however, Zargon could resume its alkaline and surfactant (AS) injections (which were suspended in February to reduce costs) and could even proceed with a modified phase 2 program. Mr. Hansen reckoned that Zargon would need to see oil prices of at least $45 (U.S.) before it might reactivate the AS injections, and at least $50 (U.S.) before it would consider phase 2. If the company had no liquidity issues, its ambitions might be different, but alas, that is not the case. Mr. Hansen said the company is keen to avoid any further credit problems and will not be aggressively demanding credit at the Sept. 22 meeting. He also acknowledged that the company will need to come up with a plan for next June's debenture maturity.

Good old Dundee - buy high sell low. I wonder how long before they are writing off these latest acquisitions? Earlier this year, Dundee jettisoned its retail wealth management arm, Dundee Goodman Private Wealth. The division, which had around $3.5-billion in AUA, was sold to Echelon Wealth Partners Inc. for $13.5-million, which represents a valuation of approximately 0.4 per cent of assets. If Dundee ends up buying a high-net-worth asset manager, it will likely pay a significantly higher valuation. Globe says Dundee on the prowl for growth Dundee Corp (C:DC) Shares Issued 55,535,173 Last Close DC.A 8/19/2016 $6.16 Monday August 22 2016 - In the News The Globe and Mail report in its Monday, Aug. 22, edition that Dundee is planning on moving from being a seller of wealth management assets to a buyer, with executives making it clear that acquisitions are in the cards. The Globe's Niall McGee writes that Dundee has ambitions of growing assets under administration (AUA) at Goodman & Co. Investment Counsel, its high-net-worth subsidiary, more than fivefold to $1-billion. Its current AUA is $176-million. Dundee chief executive officer David Goodman says, "To move the needle the way we want to move it, we think an acquisition is the best way to go." He says the firm is looking at doing "small tuck-in" acquisitions and "something more substantial." Dundee vice-president Richard McIntyre says the firm will not rush into a deal. He says finding the right assets that are a good fit is paramount. Mr. McIntyre says: "This is a bit of a numbers game where you have to go out there and do your due diligence and do your research, and dare I say do a bit of dating. If there's compatibility there, it takes two to tango." Portfolio Management director Norman Levine says Dundee's strategy to buy makes sense if its goal is to grow quickly http://www.pressreader.com/canada/the-globe-and-mail-bc-edition/20160822/281814283277790

Cline Mining Our focus for Cline remains on improving liquidity through the sale of non-core assets and the reduction of expenses. Following its emergence from the Companies’ Creditors Arrangement Act in mid-2015, Cline has meaningfully reduced legal costs and headcount. Cline management remains focused on asset sales, including surplus land and Cline Gold, both of which are expected to be sold in the first half of 2016. As the mine remains on ‘care and maintenance,’ Cline management continues to sell used equipment into a challenging market. Sales of equipment and the non-core assets are being undertaken with an aim to maximize corporate liquidity until a buyer for the asset can be secured. Cline management is continuing to consider alternative strategies which may include outright liquidation. The market for metallurgical coal remains very challenging due to weakness in the Chinese steel market and the strength in the U.S. dollar. Met coal prices have declined to the lowest levels in a decade, and are well below the break-even costs for most producers. While money-losing production has been shut in, the market remains oversupplied, and further cuts and/or a pickup in end-demand will be required to rebalance the market. The strong U.S. dollar has been a competitive headwind for U.S. producers versus their Canadian and Australian peers, given the weakness in those currencies. One offset to this is that Cline’s debt is denominated in Canadian dollars; Australian and Canadian dollars tend to move in the same direction, so this acts as a partial buffer in Cline’s favou Perhaps Cline may be worth something to Marret high yield/resource after all.... After years of pain, coal becomes one of the hottest commodities of 2016 http://www.reuters.com/article/coal-markets-idUSL3N1AY58G

Some more info on ZAR (from a friend on IV) with the common now moving up on heavy volume... Have been asked privately for more colour on Zargon so thought I would do a follow up post. Its just math, consider Zargon in the current OG environment. There have been enough transactions to set sell precedent for the kind of oil assets ZAR owns. At the bottom transactions from the distressed have often ranged between PDP & 1P values. PDP is exceptionally important given bank lines are based around these values, if an acquirer can purchase assets near PDP values the potential exists for the premium OG players to increase their liquidity (depending on how structured) while transacting at accretive metrics. In the case of Zargon pro-forma this could be done at the corporate level, de-leveraging while acquiring significant tax pools! (Zargon holds ~$279 million of high quality tax pools - March 31, 2016, including $144 million of non capital losses) Zargon may find itself a target of the premium growth and yield players given the accretive nature of any transaction. Consider ZAR which pro-forma has: Alberta Plains Properties Overview(Excluding Little Bow ASP) -Production 1,452 bbl/d (2,012 boe/d) with Oil Prod’n Decline Rate 14% / year - Little Bow ASP Oil Prod’n Decline Rate n/a (increasing rates) (Management noted 2Q16 production of 530 bbl/d increasing to 600 bbl/d through the remainder of 2016/17) The above low 14% decline rate on Alberta Plains prodn with increasing production rates at Little Bow ASP will be noted by premium yield and growth players with higher production declines. As management noted in their updated presentation: Remaining Assets Production: 2,882 barrels of oil equivalent per day (H1 2016) 80 percent oil and liquids Even with the common @$1 per share the current EV would be under $70 million with ZAR trading under $25,000 flowing bbl. For 80% low decline oil & liquids with significant tax pools the accretion ZAR offers to an acquirer will be very tempting! Sure there will be some modest declines in prodn given the lack of current drilling, however this will further moderate an already low decline base and allow any acquirer to increase prodn quickly with less capital required to sustain current prodn. Additionally Zargons lack of drilling in 2015/6 with declining prodn provides egress with under-utilized facilities lowering capital efficiencies on new production additions. However the kicker for me is not so much the above metrics but relevant PDP values, consider that most premium OG players trade at EV/PDP values between 2X (CPG) to above 4X(RRX) ZARs PDP value will be key to any transaction. With recent transaction between PDP and 1P this is important. Proforma as per presentation ZAR has: PDP Value $93.7 million. ZAR trades at less then 1X their engineer PDP to EV! (approx 0.65 EV/PDP @75c share!) with AB Plains plus ASP ($50.6 million + $23.9 million = $74.5 million) This suggests $19.2 million for ND asset, and using Arsenal recent transaction metrics in the U.S Bakken ZAR should receive PDP value or better. Even if we pencil in a value below $19 million this will push ZAR's debt below $20 million.(which suggests debs could rise closer to PAR from current levels) This means any further transactions at PDP values or a corporate sell at PDP should unlock about a $2 value for the common with debs at PAR. With tax pools, low decline oil production, egress and a potential PDP price tag.... Zargon in its current form is not long for this world.(value will be unlocked or it most likely will be acquired) ZAR should continue to trade much higher.

Interesting - thanks for posting

Zargon Oil And Gas Is Now Deeply Undervalued, Here's Why http://seekingalpha.com/article/3998863-zargon-oil-gas-now-deeply-undervalued#comment-72905415

I agree that the small cap end of the market remains generally inefficient and poorly followed. Proliferation of ETF's, brokers putting all of their clients money into WRAP accounts and other structured products, the decline in the number of small cap funds and assets under management (at least in Canada) have all seen money move away from this space. Also the overall mantra in the markets and investing nowadays is overwhelmingly "liquidity". How many times do I mention a stock to your mainstream investor and many other managers of money and the question or refrain is "is it liquid"?

What is amount of debt ahead of preferreds? Estimate of total business value as a going concern or ultimate liquidation value if it proceeds to this? Need to know if there is any margin of safety to pref value of $7mm as you say.

How much did the DC management pay for their investment in TauRx? $72mm? Diversification away from speculative energy & mining stocks with an even more speculative shot in the dark biotech investment.... http://qz.com/744399/a-new-drug-claims-to-be-the-first-to-halt-the-dementia-of-alzheimers-but-is-it-science-or-spin/ Time to sell everything and return the proceeds to shareholders?

Dundee (TSX-DC.A): · Stock may trade down today. They own about 5% of Taurx. TauRx (private) has a Phase 3 Alzheimer's drug candidate (a new class in development) that missed its primary endpoint = failed trial · Should come as no surprise as 99% of Alzheimer's drugs in development have failed

Yes there is a current yield of 7.5% and a yield to maturity of close to 28%. Not bad in a time of NIRP and ZIRP policy. After sale closes Company will only have debt of these convertibles ($57mm) and cash of about $22 million. My guess is that the North Dakota production (395 barrels a day, 2.1mm bbls proved and PDP value of $19.2mm) will be sold next for anywhere from $15mm to $25mm adding to the Company's cash pile.

I find there is too much senior debt ahead of the TBE debentures for my comfort - especially with oil down at $33. The Fortress 2019's are a good bet. Don't know Argent or Toscana enough to comment. I like the Zargon debentures and the Pengrowth ones are beginning to get interesting. Two others that may be attractive that I own are the Discovery Air debentures and Western One debentures - both series. The Zargon debentures have doubled from the mid $20's in January to a current $53. Expecting announcement on the sales process in the next few weeks. Best bet is that the low decline >90% oil weighted Saskatchewan assets will be sold (1,500 boed) for >$50mm thus eliminating most of the debt ($65mm) senior to these debentures. The $58 million of the ZAR.DB will be backed by about 2,500 boed of low decline Alberta oil assets (about 75% oil, rest NG). http://zargon.ca/wp-content/uploads/2016/05/Zargon-May-10-presentation-v7.pdf KaChing!.... Zargon Oil & Gas Ltd. Announces Sale of Zargon's Southeast Saskatchewan Assets for $89.5 Million CALGARY, ALBERTA--(Marketwired - July 25, 2016) - Zargon Oil & Gas Ltd. (the "Company" or "Zargon") (TSX:ZAR)(TSX:ZAR.DB) has entered into a definitive agreement for the sale of all of its Southeast Saskatchewan assets for cash consideration of $89.5 million, subject to normal closing adjustments. The effective date of the transaction is July 1, 2016 and the transaction is expected to close in early September. The assets have the following attributes: Production: 1,211 barrels of oil equivalent per day of low decline production - 95 percent oil and liquids (first half 2016 rates). Proven plus probable reserves: 5.14 million barrels of oil equivalent - 96 percent oil and liquids (McDaniel & Associates Consultants Ltd. - Dec. 31, 2015). The proceeds of the transaction will initially be used to eliminate Zargon's bank debt. As outlined below, Zargon's net debt (including debentures) will be approximately $35.0 million following the transaction: Bank debt and net working capital - $65.0 million as of June 30, 2016. Net sale proceeds after closing adjustments - $87.5 million. Outstanding June 2017 Convertible Debentures - $57.5 million Remaining Zargon Assets With the completion of the Southeast Saskatchewan sale, Zargon's remaining assets will be highlighted by the Alberta Little Bow Alkaline, Surfactant, Polymer ("ASP") tertiary recovery project, the Alberta Taber and Bellshill Lake low decline oil properties, and the remaining Williston Basin North Dakota properties. The 2015 year end reserves and first half 2016 production rates for these properties are summarized below: Production: 2,882 barrels of oil equivalent per day of low decline production - 80 percent oil and liquids. Proven plus probable reserves: 15.76 million barrels of oil equivalent - 87 percent oil and liquids (McDaniel & Associates Consultants Ltd. - Dec. 31, 2015). Undeveloped oil exploitation locations - 17 net locations (McDaniel & Associates Consultants Ltd. - Dec. 31, 2015). Little Bow ASP tertiary recovery project - Currently, the ASP project is forecast to provide stable oil production for a few quarters. At higher oil prices, the existing ASP infrastructure can be utilized for multiple ASP phases and Polymer only projects seeking a 10 percent incremental oil recovery on over 80 million barrels of working interest oil-in-place. Pro forma, upon successful completion of the sale of the Southeast Saskatchewan properties, Zargon's remaining assets are forecast to have the following attributes in the second half of 2016. Oil and liquids production - 2,240 barrels per day. Total production - 2,750 barrels of oil equivalent per day. Base oil declines - Little Bow ASP; no decline, stable rates at recent levels: Other Alberta; 14 percent: North Dakota: 6 percent. Average royalties - Alberta including ASP; 8 percent: North Dakota; 24 percent. Operating Costs - Alberta including ASP; $18.0 million (annualized): North Dakota; $2.0 million (annualized). 2016 second half Capital Budget - ASP Polymer Injections; $1.8 million, Other Oil Exploitation Projects: $0.6 million, Abandonments and Site Reclamations; $0.3 million. 2017 Capital Budget - ASP Polymer Injections; $3.6 million, Other Oil Exploitation Projects: $1.5 million, Abandonments and Site Reclamations; $1.5 million. If oil prices improve from current levels, this budget can be increased to incorporate high-graded oil exploitation locations and the resumption of Alkaline and Surfactant injections in high-graded areas of the Little Bow ASP project. Additional information regarding Zargon's low decline, oil exploitation properties are available on our website at www.zargon.ca. Zargon intends to release its Q2 2016 unaudited financial results on August 10, 2016, after market close. Ongoing strategic alternatives process Last year, Zargon announced the formation of a special board committee to examine alternatives that would maximize stakeholder value in a manner that would recognize the company's fundamental inherent value related to Zargon's long-life, low-decline conventional oil assets and the significant long-term oil potential related to the Little Bow ASP project. Scotia Waterous Inc. is the financial adviser for the committee. The sale of Zargon's Southeast Saskatchewan assets is a significant step in this process. The strategic alternatives process is continuing and may include but is not limited to, a financing, merger or other business combination, sale of the company or a portion of the company's business or assets, or any combination thereof, as well as the continued execution of our business plan.

I find there is too much senior debt ahead of the TBE debentures for my comfort - especially with oil down at $33. The Fortress 2019's are a good bet. Don't know Argent or Toscana enough to comment. I like the Zargon debentures and the Pengrowth ones are beginning to get interesting. Two others that may be attractive that I own are the Discovery Air debentures and Western One debentures - both series. The Zargon debentures have doubled from the mid $20's in January to a current $53. Expecting announcement on the sales process in the next few weeks. Best bet is that the low decline >90% oil weighted Saskatchewan assets will be sold (1,500 boed) for >$50mm thus eliminating most of the debt ($65mm) senior to these debentures. The $58 million of the ZAR.DB will be backed by about 2,500 boed of low decline Alberta oil assets (about 75% oil, rest NG). http://zargon.ca/wp-content/uploads/2016/05/Zargon-May-10-presentation-v7.pdf

Look at how many Michael's are in the corporate structure - Nepotism central! http://abcfunds.com/about-us/team-abc/

Yes there are definitely some warts on this Toad but that is one of the reasons that a value investor can buy: 1.Fairly well backed preferred shares in a time of NIRP yielding >10% currently and 50% to 60% of par, 2. DC common trading between 30% and 60% of NAV over the last few months. Management self interest may at some point align with all shareholders such that the purchase at these levels has paid off extremely well.

I see Irwin's switch to the new "Value" has still not panned out for him. All funds negative YTD and over 10 years!! http://abcfunds.com/performance-review/ If he had kept all those untrendy resource stocks instead of holding fire sales at the bottom of the market, his YTD numbers would have probably been half decent.

Interesting - are you certain TauRX comes out on that date? Rebound in golds should be helping NAV as well. Own some GMP preferreds as well based on the catalyst that they will sell RichardsonGMP for some good sized dollars.

NAV holding well & should get help from commodity rebound. From GMP.... Dundee Corporation1 BUY DC.A-TSX Last:C$6.10 May 16, 2016 Target: C$12.00 Q1/16 – NAV slightly lower Our Q1/16 undiscounted NAV/sh. is $15.29 (previously $15.77). Our NAV was slightly lower q/q as gains in publicly traded investments were more than offset by lower cash at the corporate level and a small decline in the carrying value of United Hydrocarbon, which we believe may have been FX related. The discount to NAV remains wide at ~60%. We believe that some investors may be continuing to apply deep discounts to certain private investments. Key updates on private investments United Hydrocarbon (UHIC), a privately held oil and gas development and production company focused on the Republic of Chad, suspended drilling operations in early 2015 due to lower oil prices. Per DC.A management, UHIC requires ~US$1 million/monthly to maintain existing properties. Management continues to pursue a joint venture partner to restart operations when oil prices become more favourable. TauRX Pharmaceuticals is a privately held neuroscience company focused on the development of drugs for Alzheimer’s disease. We continue to take a cautious approach as we await results from phase III clinical trials. We expect trial results to be available in Q3/16. We believe management is using Goodman & Company, Investment Council Inc. as a platform to build out a wealth management business. In our view, good progress was made during the quarter, with AUM increasing to $187 million from $88 million last quarter. On the call, management noted they are pursuing acquisitions to add immediate scale. Both AUM and distribution acquisitions are being considered. We believe a larger deal may result in the business being carved out into a publicly traded vehicle. As a reminder, DC.A completed the sale of substantially all assets of Dundee Goodman Private Wealth subsequent to the end of the quarter. Management anticipates that deal will free up ~$40 million in liquidity, much of which will be re-allocated to support growing the wealth management business. Maintain BUY – NAV discount remains wide Our undiscounted NAV is $15.29 (previously $15.77). We apply a 20% discount to yield our price target of $12.00 (unchanged). Shares remain well below even our most conservative NAV estimates (see figure 1 on page 3). We maintain our BUY rating.

Anyone want to revive this thread? TWIN BUTTE ENERGY LTD. 6.25% DEB (TSX - TBE.DB - $16.00) Maturity December 2018. Current yield 39%. Potential 6 bagger to face value. In discussions with bank to extend revolving credit facility which came due on 30 April. Peters & Co been marketing them since December. 14,000 bbls/d heavy & medium oil. Highly leveraged to oil price. Cardboard started a discussion on them in January. Link here... http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/tbe-db-twin-butte-convertible-debentures/

You are right. Don't they say it is better to fail conventially than to succeed unconventionally?

Skating to where the puck was. We'll see how this works out for him.. "we have stuck to our “new world investment thesis” whereby liquid technology, healthcare and American financial common shares would be the mainstay of our portfolios. " “Liquidity should be avoided. It comes at a heavy price in the shape of lower returns.” David Swensen (Yale University Endowment)

I have about an equal weighting in both the 5yr reset and the T-Bill floater. Surprised the yields are as high as they are with the amount of assets underlying Dundee and such a small amount of debt ahead of us in the capital structure. A monetization like you speak of in Taurx would lay any financial distress worries to rest and should see the DC prefs trade at much lower yields. How low? Perhaps 6% - this would imply a $23 price on the DC.PR.B (currently $13.50) and about $19 on the DC.PR.D (currently $12). These would be enormous capital gains to go with the healthy dividend income. I like the fact that I will get the $1.42 annually (about 10.5% preferred dividend yield at $13.50) from the DC.PR.B until it resets in September 2019 - hopefully the 5 year bond yield is higher by then. Dundee Securities Series 2 (DC.PR.B) $1.422 30 Sep 19 5YR + 4.1% I like the floater as the current yield is quite high for this type of security and it gives nice protection from a pick up in interest rates at the short end of the curve. It is currently yielding about 9.5% at $12. Dundee Securities Series 3 (DC.PR.D) $1.14 Floating 90Day + 4.1%

From Seeking Alpha. Interesting comment from Safety... http://seekingalpha.com/article/3965298-therapy-focus-private-companies-alzheimers-spotlight#comment-72020750 Safety in Numbers, Contributor Comments (92) |Following |Send Message Thanks for this article. I have a position in Dundee Corp ($DDEJF) common (DC.A:TSX) and preferred (DC.PR.D:TSX) and it offers interesting exposure to TauRx as they own a 4% position in the company which they valued at C$78m at year end or C$1.34 out of a stated C$15.45 NAV and a ~C$6.03 share price. There has been some press suggesting an IPO of TauRX on the back of good data at values that are multiples of the current implied valuation on Dundee's balance sheet (i.e. more than the current market cap or EV of Dundee!). All this liquidity might do wonders for the market's perception of Dundee and not only increase the NAV significantly but also reduce the discount to NAV it trades at resulting in huge upside. For example, this article in the WSJ (http://on.wsj.com/1qWK97o) speculates on a US$15bn IPO for TauRX which would be worth about ~C$13 to Dundee. This would take its stated NAV to about C$27 and perhaps a more traditional NAV discount of 30-40% would take the share price to somewhere between~C$16-19 vs the C$6.03 now.

No kidding - share price went from $13 to about $5. "Last year was a challenging one for our company. Nevertheless, we have taken steps to improve liquidity, lower our costs and develop our wealth management business," said David Goodman, Chief Executive Officer of the Corporation. Still they are estimating that year end value of the Company's assets are over $15 - not bad for a stock trading at only $6. Assuming one believes their valuation methodology... The Corporation is reporting a marked-to-market value per share of approximately $15.45 at December 31, 2015, reflective of the underlying trading prices of its portfolio of securities, and after changes in the carried value of its investment in United Hydrocarbon. http://finance.yahoo.com/news/dundee-corporation-reports-2015-fourth-231334407.html Still believe the preferreds are the best way to play Dundee Corp.