Two great questions, actually cut a section about the first question which we probably shouldn't have. anyway...
1. SENEA has one-twentieth of vote. SENEB has one vote. The latter is 50% held by the board and executives. (Kind of an old-school setup there!)
SENEB trades at a 4.3% premium at Friday's close...can't tell you specifically which to buy, really depends on if you value the voting power at that level. Were I to buy, I'd buy the A's.
2. It's a tough question to answer. If you believe the 'screening' issue is contributing to the sell-off this year, then a big catalyst is that the LIFO reserve charge probably diminishes sharply this year. Their product costs are down this season, per the shareholder letter, and steel has moderated too. Wouldn't be stunned if they actually got a small LIFO credit in the GAAP results.
So even though 'adjusted' numbers may be down, given some Q4 weakness, the GAAP numbers may be more impressive. Definitely some possible help there.
They bought back a ton of shares the last two years, but that's on hold given working capital needs.
More broadly, with these kinds of cases (in my experience, anyway), it's usually just a matter of the fears going away. The market needs to go from "yeah, that's cheap, but those assets aren't really that valuable anyway/management is dumb/reasons 3,4,5 not to buy" to "this stock is cheap, the market isn't paying attention". I think, honestly, just decent results in FY24 can do the trick, with investors over time probably figuring out how substantial the LIFO issue is.
Two great questions, actually cut a section about the first question which we probably shouldn't have. anyway...
1. SENEA has one-twentieth of vote. SENEB has one vote. The latter is 50% held by the board and executives. (Kind of an old-school setup there!)
SENEB trades at a 4.3% premium at Friday's close...can't tell you specifically which to buy, really depends on if you value the voting power at that level. Were I to buy, I'd buy the A's.
2. It's a tough question to answer. If you believe the 'screening' issue is contributing to the sell-off this year, then a big catalyst is that the LIFO reserve charge probably diminishes sharply this year. Their product costs are down this season, per the shareholder letter, and steel has moderated too. Wouldn't be stunned if they actually got a small LIFO credit in the GAAP results.
So even though 'adjusted' numbers may be down, given some Q4 weakness, the GAAP numbers may be more impressive. Definitely some possible help there.
They bought back a ton of shares the last two years, but that's on hold given working capital needs.
More broadly, with these kinds of cases (in my experience, anyway), it's usually just a matter of the fears going away. The market needs to go from "yeah, that's cheap, but those assets aren't really that valuable anyway/management is dumb/reasons 3,4,5 not to buy" to "this stock is cheap, the market isn't paying attention". I think, honestly, just decent results in FY24 can do the trick, with investors over time probably figuring out how substantial the LIFO issue is.
Thank you! Always lots of fun to think along with you on these business/invest ideas