I like reading posts that contradict themselves.
First you said that these properties sell for 2-2.5 revenues. If Loewen had revenues of $1.2B last year, then shouldn't selling everything yield $2.4 - 3 Billion?
Also, as you know, with funeral homes, the opposite of a bulk discount applies. There is a cluster premium, i.e. if one home is worth $1 Million, 10 homes sold together might be worth $15-20 Million. Consolidating is expensive (Loewen and SRV should know).
Using the last sale as a basis for any future sales is nonsense. They had a gun to their head and most of the potential customers were hoping Loewen would be liquidated. Didn't happen and they wont make the same mistake again.
SRV, STEI, and LWn will all have better Q1 results (not great but better than Q4), and by Q2 all three will be significantly up in both earnings and stock price. LWN has the highest risk and the highest potential return. Sometime over the next three months, I expect to see STEI buy a block of homes from Loewen for big dollars. |
