tag:blogger.com,1999:blog-8338172466331766962.post3829408026790362730..comments2024-03-27T00:22:51.899-04:00Comments on Investment Talk: Canexus CorpSPBrunnerhttp://www.blogger.com/profile/10497905201043436744noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8338172466331766962.post-38937450652286301472012-06-30T15:55:36.499-04:002012-06-30T15:55:36.499-04:00What I got for dividends in 2011 was 7 monthly pay...What I got for dividends in 2011 was 7 monthly payments and one quarterly payment. I specifically said I look at what is received in a specific year, not what is declared. As far as I can see, December 2010 monthly dividend was declared in December, but paid in January 2011. So I have December, January, February, March, April, May, June declared dividends, paid in January, February, March, April, May, June and July. Each was for $.0456. Also, September declared dividend was paid in October. December declared dividend was paid in January 2012.<br /><br />While maybe technically a buyout is not what happened. I knew this when I wrote my blog, and I see no reason to change my opinion. That is because 74,539604 Units were issued for the Fund’s Indirect Acquisition of Interest in Canexus LP. It says so right in the annual statements, note 27. <br /><br />Yes, I read all the stuff about how they were unwinding a complex situation. But all this resulted in a lot more shares and a lot less book value per share. I had looked at the two sets of accounting statements for Canexus Income Fund and Canexus Limited Partnership. This is not the only company to have such structures with less than understandable accounting overall.<br /><br />According to the 2010 annual statements, there were 39,341,055 shares worth $297.58M or $7.56 each. According to the 2011 annual statements there were 118,240,675 shares worth $147.05M or $1.24 each. I would characterize this as a drop in book value. Yes, I know that shares were issued for other reasons, but however, you look at it, there is a big drop in book value.<br /><br />If you were invested in Canexus Income Fund before the end of 2010 and you now held Canexus Corp shares, from the accounting statements, it would appear that book value on your shares went from $7.56 per share to $1.45 per share.<br /><br />All this is complicated by the fact that the company changed according rules for Canadian GAAP to IFRS. However, I do not change the values in my spreadsheets just because of accounting rule changes. Accounting rule changes happen all the time. I have to have a very good reason to change value in my spreadsheets to newer ones published. Sorry, but that is just the way I look at things.SPBrunnerhttps://www.blogger.com/profile/10497905201043436744noreply@blogger.comtag:blogger.com,1999:blog-8338172466331766962.post-69139916883226012292012-06-30T14:09:07.452-04:002012-06-30T14:09:07.452-04:00I'm not missing any dividends from 2011: 6 mon...I'm not missing any dividends from 2011: 6 months of trust distributions, and 2 quarterly corp dividends came through (though the Dec '11 dividend wasn't paid until Jan '12). Even then, that's not the right amount for the discrepancy you have -- no idea where 9 cents would come from.<br /><br />Also, where are you getting the information on the limited partnership "buyout"? Those shares were spun-out into the market, not bought by the income trust (later corporation). There was no effect on (true) book value.<br /><br />Briefly, what happened was that the operating company was jointly owned by the income trust, and by Nexen. Nexen wanted out, so they converted their ownership of the operating assets into shares of the income trust, and sold those into the market. The share count increased, but the % ownership of the underlying assets increased as well, with no effect on book value.<br /><br />Part of the confusion seems to be how things were reported before: In 2010, the trust had basically no equity/BV except for the investment in the LP. I have no idea how the accountants determined that that was carried at ~$300M, but that earlier book value was fictional. The LP had assets of $754M and liabilities of $569M in 2010, which is close to the new combined corporate totals in 2011. In 2010 ~1/3 of that would have belonged to the income trust.<br /><br />It was a confusing structure, and a confusing unwinding.Potatohttp://www.holypotato.netnoreply@blogger.com