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Brookfield Asset Management (BAM.A)

48K views 116 replies 42 participants last post by  Money172375 
#1 ·
I've been watching this chart and over the past three days there has been a strong rally, hence the 3 white soldiers pattern, I'm wondering if anyone wants to jump on this with me?
 
#74 ·
From G&M

INVESTING
Saturday, July 29, 2017

TED DIXON
Insiders take on Exchange Income short sellers Exchange Income Corp. (Friday's close $27.06) stock has been under pressure this month as short-sellers questioned the monthly dividend's sustainability.

Insiders are taking the other side of the trade. In the week following the July 19 release of second-quarter earnings, 11 insiders have bought a total of $1.3-million worth of stock in the market. The buyers included former Manitoba premier Gary Filmon, who bought 2,000 shares on July 25. The company also restarted its buybacks, repurchasing 73,290 shares in the first three days of this week at an average price of $27.07.

Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors.
 
#72 ·
spidey u made me do it. My records show that between mar/16 & aug/16 i bought BAM for an average price of CAD 42.60.

not including dividends, not including option sales, not including recent spin-offs of trisura & brookfield business partners shares, that basic BAM dot A works out to something like 12.98% return, or 10.40% per annum.

US option sales have been decent if difficult, another $1.85 in CAD, or 3.47% annualized return in option sales.

still, the company is sufficiently annoying for a retail option writer to consider letting the shares go under assignment. There's too much nuisance per dollar of profit.

what nuisance? for starters the company keeps changing the currency of the bulk dividend it transmits to the broker in question. Right now they're sending in USD but previously had been sending in CAD. That's only to certain brokers, though. Company doesn't divulge or discuss which brokers.

even messier are the frequent reorgs which spin out tiny bunches of different new shares. Lately it was Trisura, before that it was brookfield business partners. Problem is that the deliverables for all the options then change, one gets all these series & classes of irrregular options with or without the spun out shares.

since brookfield options are illiquid anyhow in both canada & the US, the options markets turn into dealers' dogs' breakfasts.

ONEX options are also illiquid & very difficult to trade, but at least ONEX doesn't keep leaking little bits of unwanted new shares every few months. ONEX shares have also risen from $28 to $100 in recent years, a significantly better performance than BAM.


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#75 ·
i fixed up the vexatious options, i'm going to keep brookfield. Excellent management. Such vast geographical & industry diversification all over the planet, one could almost say that BAM is a good defensive stock.

it's too bad the company is such a high-maintenance partner though
 
#76 ·
agree, they have such great holdings that you can't pass them up ... i certainly view them as a long term hold ... the diversity of kind location and quality of real estate and the holdings in utilities and industrials are really very strong ... just set and forget
 
#81 ·
The amazing performance continues.

1 year return: 56% (more than 3x the index)
2 year return: 36% annualized (also more than 3x index)

Still holding long. It's the largest position in my low dividend/growth portfolio and if it grows much larger I will sell some to rebalance to equal weights.
 
#82 ·
I worry about BAM (no fundamental reason) now. I fear that management will lose discipline, that they aren't making as good deals as in the past and that their deals are immensely complex that it's easy to hide something. Also, it's $95 B market cap is huge in Canada. It is accelerating towards that of RY, which has $150 B market cap and I fear that they will suffer the curse of the TSX (https://www.macleans.ca/economy/eco...change-its-not-always-great-being-number-one/)

Maybe this time it will be different?

Disclosure: I have a huge positions in BIP and medium positions in BAM, BEP and BPY.
 
#88 ·
I have some of BAM's split preferreds as well as now, some perpetual pfds. I am more concerned about the split pfds, even although they have comparatively good downside protection.

It is a diversified company, but I wonder how they will perform in the current and coming global financial recession. How bad this will be is anyone's guess. Here is one attempt: Four scenarios for the global economy after Covid-19

Brookfield posted this in March: https://bam.brookfield.com/~/media/...ate_for_Brookfield_Shareholders_3-23-2020.pdf
 
#89 ·
I think BAM is a quality company but still expensive. It has fallen in line with the index so I don't see any additional upside or reason to buy it beyond that.

BPY.UN, however, one of their big subsidiaries, is down nearly 60%. They have tons of office space in big cities not collecting rent. Yield of 17% almost certain to be cut back. But, in my opinion, a good long term buy here.
 
#93 ·
I'm actually more interested in BAM now, if you've been waiting for a chance for good management to reallocate capital and take care of market inefficiencies now is the time.
Things are in chaos, good time to make buys.

I'm not sure toll roads or office space will be as valuable. Lots of companies will see work at home as a big cost save.
That being said, there are a lot of things that fall apart in distance offices, particularly relationships and corporate cohesion.
 
#94 ·
I haven't seen either cost savings or things falling apart matter for the "encourage or discourage" remote work discussion. It's usually been around who can be trusted to work effectively so no measurement is required and that there isn't a good measurement for the much larger pool of those that can't be trusted.


Guess who fits into each bucket ...

Cheers
 
#96 ·
I recently reviewed my individual stock portfolio, and decided to keep BAM.A (did not sell any).

For a while I actually thought my position was in the red, but I had not properly accounted for the stock split + cash payment. Looking at it again on the weekend, I saw that it's performed reasonably well since I purchased it.
 
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