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Dorel Industries Inc. (DII-A.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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6.520.00 (0.00%)
At close: 02:33PM EDT
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  • J
    Joel
    Q1 is released. From reading the materials it is not clear to me where the balance of the funds from the sale of Dorel Sports has been utilized or accounted for. Ross, if you are reading this- would love to hear your thoughts.
  • R
    Ross
    I honestly wish they didn't do these quarterly earnings calls. Every time, they open their mouths the stock drops. They never provide accurate/valuable information and we never know when we are being miss led. Just give us the earnings report and the balance and then shut up. The greatest risk in this stock is the family board. They will probably say we are in a cloud of smoke and can't see our way out a.k.a. we are going to keep you in the dark until we know how we want to manipulate you.
  • J
    Joel
    Current Market Cap of Dorel is more or less 220M USD, For Dorel Home and Juvenile. About half of the proceeds of the sale of Sports (400M USD went into paying off substantially the debt of the company. Very little debt remains outstanding. Current share price is ridiculously low...... An opportunity for sure for value hunters.
  • M
    Mathieu
    The Executive Vice-President, Sales & Marketing (Jeff Segel) bought 5k shares of Dorel early last week.
    Source (in French) : https://www.lapresse.ca/affaires/marches/2022-05-15/l-investisseur-avise/xebec-perd-des-appuis.php
  • J
    Joel
    I am curious to know why Dorel has not used the NCIB to buy back shares in light of the massively undervalued stock price. They must be close to debt free and market cap is below $ 250M USD.
    I suspect a sale is in the works…..
    🤔
  • R
    Ross
    With this board they are always trying to influence the stock price for their benefit. Seams to be that they had a very bearish view of the future but also looking to monetize. Doesn’t really make sense have a bearish outlook and try to sell a company. They probably already have a buyer, that is going to take the whole company. Meaning they are going to have to get the majority vote of minority shareholders. The offer needs to be significantly above the share price in order to get the deal done. They are trying to prevent a stock rally! They don’t want the share price to rally beyond the sale price because it would then get voted down.
  • M
    Matt
    Can’t wait to read through the report today. I’m very curious to see what’s left on the balance sheet.
  • A
    Anonymous
    What’s upsetting is why did they say it won’t be any better due to shortages! Like they want the shares to drop like this! I think something is brewing soon, I don’t think we should sell
  • W
    William
    Ross, the board has been very quite. What say you?
  • m
    michael
    Revenues ok ….most companies reporting same problems
  • Y
    Yahoo Finance Insights
    DII-A.TO reached a 52 Week low at 9.51
  • A
    Anonymous
    Good job dorel u made u r stock go down! We appreciate the #$%$ in the #$%$ for investing in your company
  • R
    Ross
    How to play the privatization deal. The founding family has had this plan in the works for the last two years. Through negative press and earning calls to create a doom and gloom sentiment and drive down the price of the stock. They also used some clever accounting tricks such as goodwill depreciation in Q1 to make there EPS artificially low. They have been planning this hostile takeover for some time.

    Who here thinks it is a coincidence that they had a press release 3 days before there best earnings report ever, stating they they have reached an agreement at the current market price ($14.50 CAD/share.) I think they are going to come up a little bit on the offer because they know that it will get voted down by the minority shareholders. I suspect they come in with an offer of $17.50 CAD/share to seal the deal. This may seam like a good deal but they have one of the hottest commodities during COVID-19. Tons of companies are having hardships and this company is thriving (despite what the founding family would want you to believe.) Their offer of $17.50 very well can get voted down by the minority shareholder and they the stock will skyrocket above $20.00.

    I am finally starting to see bikes back on shelves but they don't stay for long and with Christmas just around the corner they should be able to sell their bikes at a premium. Not to mention stationary bikes. Also, this is creating pent up demand that will last for years. For example, I am a mountain biker but I am putting off upgrading because prices are just to high now and I think most avid riders are in the same boat.

    Note to all minority shareholders: when time comes to vote on the sale vote NO because the board knows how good the times are to come!

    Note for non shareholders: Currently the agreement in principle is for $14.50 CAD and it is trading at $14.60 CAD. That means that there is a floor beneath your feet. There are three scenarios that can happen. First, the keep there current offer and it goes to a vote of minority shareholder and it will get voted down (look at article by Letko Bresseau.) Second, They increase their offer to %20 to %30 above last trading price (this is typical for a privatization deal.) This may or may not get voted down but if it does get voted down at that price the stock will skyrocket to above $20.00. Actually, I can only think of 2 possibilities. What I am trying to say is stock as no risk with lots of rewards. The only downside is you may have to hold your stock for all of this to payout before it pops.
  • R
    Ross
    I am hoping everyone realizes that the net loss is cause by a one-time income tax expense. Also, note that Martin Schwartz states the his comment to rewarding the shareholders for their commitment to company. Could that mean he will be reinstating dividends? His future outlook sounds more optimistic. What do you guys think? Is this a good earning report? Will the stock rise?
  • R
    Ross
    Ok for those of you who care. My opinion of the sale of the manufacturing of juvenile facilities. First off, I think this indicates an exit strategy. I think it is a good exit strategy. They will elimate debt and increase cash flow. Although they are taking a non-cash loss of 13 million (this must include both manufacturing facilities.) This 13 million will act as a tax deduction in 2021 further increasing cash flow. They will have net proceeds of 4 million. If they are selling Juvenile, this is a good thing. They are extracting the equity from tangible assets and eliminating debt. This will benefit them when they sell. The sale of a company this size is primarily driven by EBITAD. Therefore, it makes no sense to keep assets with equity if you can unload them prior to your exit and distribute the cash to shareholders. I don't know how much of this debt is linked to these facilities but they are going to have even more cash on hand and less debt to pay off. Should not affect the sale price of Juvenile assuming, they are able continue with the same margins they currently have. Honestly, Home is most value of all three sectors. If they are able to eliminate 100 million of their long term debt. Increase their cash in hand by 10 million. Sell Juvenile for 300 million and Home for 800 million. We are looking at a payout of about $50.00/ share. Plan on waiting 18 months because things like this don't happen overnight.
  • B
    Brian
    Just for fun, here are a few recent market growth articles/reports that directly list Dorel as a major player in this markets:

    "Children Tricycle Market Emerging Economies Expected to Influence Growth Until 2026 | Radio Flyer, Dorel Industries, Besrey, Bentley Trikes"

    "Baby Cleaning Products Market to Grow with Sustainable CAGR During 2020 – 2027 | Key Players – Dorel Industries , Newell Brands"

    "Analysis Reveals Hidden Growth Pockets in Bicycle Industry: Accell Group, Dorel Industries, Giant Bicycles, Merida, and Trek Bicycles, and more"

    "Children Bicycle Market To Set Phenomenal Growth By 2027 | Accell, Giant, Dorel Industries, Trek, Hero Cycles, TI Cycles, ByK Bikes, RoyalBaby, Happy dino, Goodbaby, Phoenix, Flying Pigeon, FOREVER"

    "Global Hybrid Bikes Market (2021) to Witness Huge Growth by 2026 | Trek Bikes, Shimano, Giant Bicycle, Boardman Bikes, Dorel Industries"

    "Ready to Assemble Furnitures Market 2021 Growing with Major Eminent Key Players: Sauder Woodworking, Dorel Industries, Bush Industries, Whalen Furniture, Homestar North America, etc."
  • B
    Brian
    I work in the cycling industry as a product engineer and manufacturing liaison. I spend time in China (and other bicycle manufacturing locations) at the factories and have a good relationship with many of the factories, their managers, and even their factory workers. Anyway, point being, Dorel has product, across all of their divisions, ready to "receive", after the vote. You can come to your own conclusions as to why they would have product waiting on the sidelines as bicycles, desks, and other items they manufacturer, are hard to come by and are in high demand.
  • R
    Ross
    TD securities increase their price target from $15 to $46.00!!!
  • v
    vinewood
    The sale is a done deal imo. It was clear from the released article that a price was negotiated with the large minority stockholders. Excerpt from the article "The increase in the purchase price follows exchanges and discussions with shareholders holding more than 50% of Dorel’s Class B Subordinate Voting Shares". For shareholders that are going to ride it out to see the final voting you may want to talk to your brokers as to what the fees will be when the sale goes through. $16.00 c less transfer, admin, etc....fees. It may be substantial.