Q: Reko has just announced another profitable quarter. Revenues jumped significantly and outlook appears strong.
During the quarter, the company re-purchased 35,800 shares under the normal
course issuer bid.
During the previous quarter, the company re-purchased 29,700 shares under the normal course issuer bid.
During the fiscal year ended July 31, 2021, a total of 238,800 shares were purchased and cancelled.
On December 2, 2021, Reko paid out a special cash dividend of $0.25 per share.
The balance sheet is pristine with close to $4 in working capital and a “hard” book value approaching $8(no goodwill on the B/S and real estate at cost).
Would you consider Reko to be a buy at these levels and what would you see as the potential outcome for minority shareholders (family controls 2/3 of the shares).
During the quarter, the company re-purchased 35,800 shares under the normal
course issuer bid.
During the previous quarter, the company re-purchased 29,700 shares under the normal course issuer bid.
During the fiscal year ended July 31, 2021, a total of 238,800 shares were purchased and cancelled.
On December 2, 2021, Reko paid out a special cash dividend of $0.25 per share.
The balance sheet is pristine with close to $4 in working capital and a “hard” book value approaching $8(no goodwill on the B/S and real estate at cost).
Would you consider Reko to be a buy at these levels and what would you see as the potential outcome for minority shareholders (family controls 2/3 of the shares).