BNB.to Valuation of holding co.

Discussion in 'Stocks' started by FCCT, Apr 9, 2007.

  1. FCCT

    FCCT

    Wondering how to set a reasonable valutation. Should it trade above/below net asset value?

    Bam Investments is a leveraged play on BAM brookfield asset mgnt.

    It holds 37 millions BAM-a.to shares.

    From their Q4 NAV is $256 now.

    Market value of the shares are about $294

    Perhaps a major discount for lack of liquidity on BNB.to although 100 or 200 shares can go a long way for retail traders


    I figured if its a leveraged play it should be trading above nav.
    http://finance.yahoo.com/q/bc?s=BNB.TO&t=3m&l=on&z=m&q=l&c=bam

    http://finance.yahoo.com/q/bc?s=BNB.TO&t=6m&l=on&z=m&q=l&c=bam
     
  2. A $1.00 change in the value of Brookfield's Class A shares results in a $4.65 change in the calculated net asset value of a BAM Investments common share.

    So for every dollar they lose, you'll be losing at least $4.65......


    Hence the price action. I test a simple trading system and it exited on Feb. 26, 2007 due to the price change in the stock.

    NAV doesn't really apply under a leveraged circumstance like this, as far as I can tell.
     
  3. FCCT

    FCCT

    Well in less than a month it rallied close to 80 points!
    Glad I took 5 pts on my 200 shares at $241 :)

    Another interesting play
    GRSR
    solar stock play, there's a big meeting tomorrow, should clear alot of things up, otcbb listing, market maker selection, 2006 annual report, possible Q1 2007.
    Its a sketchy situation, GRSR is an umbrella corporation. Downside limited 40 cent stock. Sould be a mover tomorrow.