Dorel Industries (Symbol DII.B)

Discuss your favourite picks, broker, and trading or investment style.
Post Reply
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

Couldn't find a thread on this one little over 3% drop on this one today can't figure out why?
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Dorel Industries (Symbol DII.B)

Post by Peculiar_Investor »

I'd probably start with Dorel Industries Inc. | Dorel Reports Second Quarter 2014. From Dorel Industries Inc: TSE:DII.B market news - Google Finance it seems that brokerage coverage has mixed feelings about the results based on the various dart throws price target changes.

I"ve been a long term holder of Dorel. I have found that their quarterly financial results and stock price movements generally are lumpy and therefore it seems to me that today's price movement isn't that unusual for this company.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

Can you say drop like a rock. :shock: :thumbsup:

Dorel Industries Inc (DII-B.TO) -Toronto $31.98 Down 2.77(7.97%)
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
chufinora
Contributor
Contributor
Posts: 769
Joined: 12 Oct 2009 15:03
Location: Ottawa

Re: Dorel Industries (Symbol DII.B)

Post by chufinora »

Something weird there - it dropped like a stone right at the close. I owned some DII.B for almost a year and sold it in July for a very small gain. fundamentals look good, low debt but seems like ongoing weak results and low margins I recall.
ig17
Veteran Contributor
Veteran Contributor
Posts: 3418
Joined: 21 Feb 2005 20:54

Re: Dorel Industries (Symbol DII.B)

Post by ig17 »

Today is a weird day. A few Canadian stocks traded heavily at the market close. 10s after the close actually. Stockhouse Level 2 shows a flurry of MOC trades at 16:10:00.

S&P rejigged several TSX indexes effective today. ETFs and index funds had to adjust. That's one possible explanation of today's action (although I don't see Dorel on the list of affected stocks).

Someone mentioned "sell Canada" trading program in another thread.
George$
Veteran Contributor
Veteran Contributor
Posts: 2612
Joined: 18 Feb 2005 20:46
Location: Toronto

Re: Dorel Industries (Symbol DII.B)

Post by George$ »

Yes, I also have Dorel shares - and not paid any attention to it for some time.

I paid about $26 per share. Should have sold methinks? Sell now? Perhaps "yes" - to simplify my portfolio.

Why the one day big drop? Dunno? A lot of up and down since 1999.
“The search for truth is more precious than its possession.” Albert Einstein
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Dorel Industries (Symbol DII.B)

Post by Peculiar_Investor »

Suspect that this news release might be part of the reason, Dorel Industries Inc. Announces US$105 Million Bought-Deal Offering of 5.5% Extendible Convertible Unsecured Subordinated Debentures. I would have expected the impact on Sept 18th, not the 19th. Perhaps the deal isn't selling well and maybe there is an arbitrage play available or happening.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
ig17
Veteran Contributor
Veteran Contributor
Posts: 3418
Joined: 21 Feb 2005 20:54

Re: Dorel Industries (Symbol DII.B)

Post by ig17 »

Peculiar_Investor wrote:Perhaps the deal isn't selling well and maybe there is an arbitrage play available or happening.
Dorel offering was available through TDDI - New Issues. It closed within hours.
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

It looks like this pays dividends in US dollars but can't find anywhere to see that in writing.

Quarterly dividend
The Board of Directors of Dorel declared its regular quarterly dividend of US$0.30 per share on the outstanding number of the Company’s Class A Multiple Voting Shares, Class B Subordinate Voting Shares, Deferred Share Units and cash-settled Performance Share Units. The dividend is payable on December 4, 2014 to shareholders of record as at the close of business on November 20, 2014.
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Dorel Industries (Symbol DII.B)

Post by Peculiar_Investor »

Brian, I'm not sure what you are asking.
BRIAN5000 wrote:It looks like this pays dividends in US dollars but can't find anywhere to see that in writing.

The quarterly dividend information you mention comes from Dorel Industries Inc. | Dorel Announces Improved Third Quarter Results, and it specifically mentions that the dividend is in US dollars (US$0.30).

Dorel's financial statements use US dollars as their reporting currency.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

I spent some time looking for the answer then I finally found it in the link posted after I posed the question. Don't know why the company on its website in the dividend informatin section just wouldn't say dividend is paid in US dollars.
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Dorel Industries (Symbol DII.B)

Post by Peculiar_Investor »

In case anyone else wonders about today's big drop in share price, the company has announced Strength of U.S. Dollar Expected to Impact Dorel in 2015
Dorel wrote:(Marketwired - Jan. 29, 2015) - Dorel Industries Inc. (TSX:DII.B)(TSX:DII.A) today stated that the surge in the value of the U.S. dollar versus the majority of the Company's other operating currencies is expected to have a significant negative effect on Dorel's earnings through 2015. As an international consumer products company, the increase in the value of the U.S. dollar impacts both cost of sales for Dorel's international divisions that purchase in U.S. dollars and sell in local currencies, as well as Dorel's reported earnings translated into U.S. dollars.
Share price is down about 5% this morning on this news.

I doesn't change my view of the company and I'll continue to hold.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
scomac
Veteran Contributor
Veteran Contributor
Posts: 7788
Joined: 19 Feb 2005 09:47
Location: The Gateway to Wine Country

Re: Dorel Industries (Symbol DII.B)

Post by scomac »

Peculiar_Investor wrote:In case anyone else wonders about today's big drop in share price, the company has announced Strength of U.S. Dollar Expected to Impact Dorel in 2015
Dorel wrote:(Marketwired - Jan. 29, 2015) - Dorel Industries Inc. (TSX:DII.B)(TSX:DII.A) today stated that the surge in the value of the U.S. dollar versus the majority of the Company's other operating currencies is expected to have a significant negative effect on Dorel's earnings through 2015. As an international consumer products company, the increase in the value of the U.S. dollar impacts both cost of sales for Dorel's international divisions that purchase in U.S. dollars and sell in local currencies, as well as Dorel's reported earnings translated into U.S. dollars.
Share price is down about 5% this morning on this news.

I doesn't change my view of the company and I'll continue to hold.
This makes no sense to me. All the goods that Dorel sells are manufactured abroad. Virtually all of the bike components are made in Taiwan. The furniture in Canada. The juvenile products will be made in the far east as well. All of those are now lower cost markets than the US to which they are selling. There will be a price adjustment period for the international markets, but after than I would think that Dorel should actually benefit from a strong USD. I was of the mind that this is the sort of Canadian company that can actually benefit from the current situation versus a company like Finning that must buy US manufactured goods and sell them abroad. Thoughts? It's hard to argue with the boss.
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
westcoastfella
Contributor
Contributor
Posts: 565
Joined: 10 Jun 2009 15:47

Re: Dorel Industries (Symbol DII.B)

Post by westcoastfella »

scomac wrote: This makes no sense to me. All the goods that Dorel sells are manufactured abroad. Virtually all of the bike components are made in Taiwan. The furniture in Canada. The juvenile products will be made in the far east as well. All of those are now lower cost markets than the US to which they are selling. There will be a price adjustment period for the international markets, but after than I would think that Dorel should actually benefit from a strong USD. I was of the mind that this is the sort of Canadian company that can actually benefit from the current situation versus a company like Finning that must buy US manufactured goods and sell them abroad. Thoughts? It's hard to argue with the boss.
From the same article:
Mr. Schwartz explained that while it is too early in the year to quantify the impact of foreign exchange, there are mitigating factors which are expected to ease the situation somewhat. "New products currently being launched reflect the currency factor and are priced accordingly; further, we are working with many of our retail partners on implementing suitable price increases. Recent reductions in oil prices and many commodities will help offset the higher U.S. dollar as will the strength of the U.S. economy, where all three of our segments have a significant presence. Our Home Furnishings segment will benefit from the strong U.S. dollar as a portion of our products are manufactured in Canada and sold in the U.S.," concluded Mr. Schwartz
To me, this sounds like an issue with the speed of the USD rise, not necessarily the rise in value itself. Stuff made and put into a supply chain at local currency price X back in the summer/fall are bringing in less revenue in USD in current retail environment, because every currency has fallen against the USD. This seems to be a temprorary problem, and Dorel is already looking to rectify it.

I'm not overly surprised to see this, it seems every time I initiate a position in something, some horrible news causes a sharp drop right after I fill my boots :cry: . I'll look at adding a bit more on the drop.
ig17
Veteran Contributor
Veteran Contributor
Posts: 3418
Joined: 21 Feb 2005 20:54

Re: Dorel Industries (Symbol DII.B)

Post by ig17 »

Dorel reports in US dollars.
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

Something coming out in the conference call tomorrow?

28.16 Down 1.61(5.41%) 2:31PM EST
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Dorel Industries (Symbol DII.B)

Post by Peculiar_Investor »

Once upon a time I was a shareholder but I sold some time ago.

Today's news is they are being taken private ... Dorel Reaches Agreement in Principle Regarding Potential Going-Private Transaction
Dorel wrote:Dorel Industries Inc. (TSX: DII.B, DII.A) (“Dorel”) today announced that it has reached an agreement in principle regarding a transaction whereby Dorel would be taken private by a buyer group led by affiliates of Cerberus Capital Management, L.P. (“Cerberus”) and Martin Schwartz, Jeffrey Schwartz, Alan Schwartz and Jeff Segel (the “Family Shareholders” and together with Cerberus, the “Buyer Group”). The Buyer Group has submitted a non-binding proposal to acquire all of Dorel’s outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares not currently held by the Family Shareholders and their immediate families at a price of C$14.50 per share. Dorel has granted the Buyer Group exclusivity through November10, 2020 to complete negotiations and enter into a definitive transaction agreement between Dorel and the Buyer Group.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Spudd
Veteran Contributor
Veteran Contributor
Posts: 1518
Joined: 22 Sep 2013 14:52

Re: Dorel Industries (Symbol DII.B)

Post by Spudd »

Sweet! I own this one with a cost base of $11.21. Too bad I didn't double down during the depths of the pandemic, it got down below $2.
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

Spudd wrote: 02 Nov 2020 13:12 Sweet! I own this one with a cost base of $11.21. Too bad I didn't double down during the depths of the pandemic, it got down below $2.
Seems to me $14.50 is cheap $21.90 BV not that I've looked at this very hard.

The family shareholders currently own 19.18% of Dorel's stock on an economic basis and 60.17% on a voting basis, according to the statement.

Done deal if it helps the Family out?
DanH
Veteran Contributor
Veteran Contributor
Posts: 2174
Joined: 21 Feb 2005 14:25
Contact:

Re: Dorel Industries (Symbol DII.B)

Post by DanH »

Even Bob Tattersall (Saxon Funds founder) wrote about Dorel briefly in July - as one possible way to play the global increase in cycling. For those without access - or don't want to click through - he basically said that he'd looked at Dorel in the past. But that with a more leveraged balance sheet (debt/equity has increased 70% in 5yrs), global operations that include a significant Brazil presence (exposed to pandemic risks more than in most locations), and modest bicycle exposure; he didn't like its investment merit - despite the 0.5x book value price at the time.
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

Trading up 4.5% today at $15.68 is there a better offer in the works?
Spudd
Veteran Contributor
Veteran Contributor
Posts: 1518
Joined: 22 Sep 2013 14:52

Re: Dorel Industries (Symbol DII.B)

Post by Spudd »

I'm sad I sold it at $15 but I wanted the bird in the hand.
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: Dorel Industries (Symbol DII.B)

Post by BRIAN5000 »

Exclusivity Period Extended for Dorel Potential Going-Private Transaction

has been automatically extended in accordance with the terms of the exclusivity agreement for a further period of seven days, through November 17, 2020.
https://ca.finance.yahoo.com/news/exclu ... 00508.html
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Dorel Industries (Symbol DII.B)

Post by Peculiar_Investor »

The proposed deal is dead, Dorel | Dorel Announces Termination of Going-Private Transaction
Dorel wrote:Montreal, Quebec - 2/15/2021

Dorel Industries Inc. (TSX: DII.B, DII.A) (“Dorel”) announces that the arrangement agreement dated November 12, 2020, as amended on January 31, 2021 (the “Arrangement Agreement”), between Dorel and an affiliate (the “Purchaser”) of funds managed by Cerberus Capital Management, L.P. has been terminated by mutual agreement of Dorel and the Purchaser.

As a result of the termination of the Arrangement Agreement, Dorel’s Board of Directors has cancelled the special meeting of shareholders to be held on Tuesday, February 16, 2021.
According to Bid to take Dorel private abandoned by Cerberus, controlling shareholders - The Globe and Mail they couldn't get the backing of two major shareholders and major proxy advisory firms,
Nicolas Van Praet wrote:Two large Dorel shareholders, Montreal-based investment management company Letko, Brosseau & Associates and San Francisco-based Brandes Investment Partners, which together hold about 19 per cent of Dorel shares, had said they intended to vote against the proposal on the grounds that it undervalues the company. Two major proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, recommended shareholders vote against the plan.

The controversy centred on two opposing views about whether Dorel can build on its current momentum and deliver consistent profits after several rocky years in which the Canadian company’s once high-flying shares tumbled to near penny-stock status. Barely four years ago, Dorel enjoyed a share price near $40, but the stock has crashed hard since then as the company struggled with restructuring initiatives.
I guess shareholders will find out soon enough which of the opposing views for the future of this company is going to unfold.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Post Reply