On another note, one very astute shareholder recently forwarded me his analysis of the latest quarterly earnings for Viceroy Homes. It follows:
Results issued last night are not as bad as expected. Without currency translation loss on USA assets, would have actually made a small profit. Not bad, given the housing crunch. Still no debt and now over $16 million in cash.
Of interest is Note 3: Capital Stock, item b) Issued capital stock of the company is as follows:
If my math is correct, the average issue price of the Class A shares is about $4.92, while the effective average issue price of the Class B shares is under $0.15!! Not bad for the Class B shareholders since they were collecting annual dividends of $0.30 per share until recently, on top of being paid generous salaries.
So the Class A shares have put up the vast majority of the equity. Yet the Class B shareholders want the Class A shareholders to sell at $4.25, while the 3 Class B shareholders continue to keep their shares, at least for now, to profit from the Russian venture. Not a great deal as far as the Class A shareholders are concerned.