Late Night Finance with Sacha, Episode 2
Date: Thursday, May 7
Time: 9:00pm, Pacific Time
Duration: Projected 1 hour.
Where: Zoom
Frequently Asked Questions:
Q: What are you doing?
A: Thursday’s conference will be about analyzing BMTC Group (TSX: GBT). The company was suggested for review by somebody on the first Late Night Finance episode. Prior, I had never heard of this company before. Short of doing some very superficial research on it, I will keep myself mostly ignorant until I analyze it on Thursday, so it will be like going through a company from scratch. I’ll share screens and go through financial statements and annotate (verbally or otherwise) and go through my thoughts. I might even come to a valuation opinion, or at the very least give you my hunch. This can most certainly be used as a sleeping aid for you.
Questions during this presentation, both on and off topic, are accepted. If they become too distracting, I’ll be sure to get back to the original topic.
Q: Do you own this company, is this a pump and dump?
A: No, and no. Entirely up to you whether you want to buy, short, hold, or whatever.
Q: Why are you doing this?
A: Continuing my experimentation in video broadcasting. Who knows, I might learn something from you as well.
Q: Why so freaking late? I live in the eastern time zone.
A: It is late night finance, is it not? I might do ‘afternoon finance’ another time, but not this time.
Q: How do I register?
A: Send sacha@divestor.com an email. Subject line “Late Night Finance May 7”, and in the message body tell me what city and province/state you’re from (or if you’re international, city and country). I’ll reply later (Thursday afternoon) with the zoom channel and passcode to get in.
Q: Are you trying to spam me, try to sell me garbage, etc. if I register?
A: I can hardly manage a mailing list without breaking my own website, what makes you think I will spam you? No, if you register for this, I will not harvest your email or send you any solicitations. Also I am not using this to pump and dump any securities to you, although I will certainly offer opinions on what I see.
Q: Why do I have to register? I just want to be anonymous.
A: I’m curious who you are as well.
Q: If I register and don’t show up, will you be mad at me?
A: No.
Q: Will you (Sacha) be on video (i.e. this isn’t just an audio-only stream)?
A: Yes. You’ll get to see me.
Q: Will I need to be on video?
A: I’d prefer it, and you are more than welcome to be in your pajamas. No judgements!
Q: Can I be a silent participant?
A: Yes.
Q: Is there an archive of the video I can watch later if I can’t make it?
A: No. Eventually when I figure out a good procedure I will enable this.
Q: Is there a limit to the people that can participate?
A: Zoom limits me to 100. I really hope the number isn’t higher than 10.
Q: Will there be some other video presentation in the future?
A: Yes.
Hope you found this one interesting.
Take-away notes for me on presentation format:
1. Get people to read the AIF in advance; going through it takes a lot of time;
2. Spend the bulk of the hour on the financial statements instead of learning about the business.
About GBT itself, an interesting case. Very strong balance sheet, if stripped of its financial assets (more than $120 million on the October 31, 2019 balance sheet) and cashed the property portfolio, likely the furniture business is trading for an extremely cheap level… assuming you believe it will make money in the future (historically it has been the case).
Of course there will be some COVID-19 impact on the business. Permanent?
The stock is about as liquid as a pile of lava rocks, however. Getting in and out of this thing in any real size – good luck.