I recently profiled Urbana Corp (URB.A) (URB) here. The CEO of Urbana recently released his annual letter and it is worth a read:
In regard to Urbana’s share price, the environment of the past three years was further exacerbated by a few major Fund holders of the “A” shares becoming sellers in order to match their own fund redemptions. The nature of this selling tended to be in larger blocks directed straight into the market. The resulting discount of Urbana’s share price to the underlying asset value represented a significant opportunity for Urbana to profitably buy back and cancel “A” shares. Urbana purchased and cancelled in excess of 10% of its outstanding “A” shares as of the date of this report.
Urbana’s management anticipates continuing this program, to the extent allowed under Toronto Stock Exchange regulations, as long as a significant discount continues to exist.
In summary, our goals are as follows:
- Narrow the price/asset share discount or use it to redeem additional “A” shares.
- Simplify our holdings into positions in key securities exchanges, ideally within emerging economies.
- Acquire small positions which may form the basis for a larger consolidated investment entity.
- Maintain a liquid investment portfolio focused on depressed/value situations, primarily within the financial services sector.
Read the full letter here (pdf).
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