Canada Bread – Another Third Party Transaction Confirming Model Price
February 13, 2014
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Maple Leaf Foods (MFI) owned 90% of Canada Bread Co. Ltd (CBY) , both publicly traded Canadian companies.
Here is long-term model price chart of Canada Bread Co. Ltd.
Canada Bread Co. Ltd with monthly price bars, EBV Lines (colored lines) and model price (dashed line)
As you can observe since the 1st quarter of 2009, CBY shares have been trading at a discount to our calculated model price or fair market value. On October 20th, 2013 MFI declared its intention to sell CBY. We can see the jump in CBY shares on this announcement – see up arrow on the chart above.
Mexico’s Grupo Bimbo SAB purchased CBY yesterday at an agreed price of $72 per share. This third party transaction for the company confirms our calculated model price for CBY that has been consistently around the $72 dollar mark – sometimes a buck or two above or below this transaction level on a daily basis since the intention to sell CBY was made clear by MFI. Last night our calculated fair market value (FMV) price was $74.54.
Our algorithms perform these calculations on a nightly basis and helps users of Model Price – the app – to see what fair market value of a public company either they are interested or invested in. Is there any free service in the public marketplace can do such a thing with such accuracy?
Not that I know off. Tell your friends.
This model price algorithm must be easy to figure out?