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Brookfield Asset Management Inc. (BAM)

NYSE - NYSE Delayed Price. Currency in USD
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41.61+0.76 (+1.86%)
At close: 4:00PM EST
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  • L
    Louis
    Aren't we supposed to get special dividend this spring?
  • J
    Jakob
    BAM has a methodology to determine their "value". They take:

    Fee-related earnings value + carried interest value + invested capital - debt = Total BAM value

    At year-end they value BAM at $65.90/share

    They assign a 25x multiple to fee-related earnings value
    They assign a 10x multiple to target carried interest, net
    Invested capital is composed of listed investments and unlisted investments

    I wondered if the 25x multiple for fee-related earnings was appropriate, though I have no basis to dispute it.

    Turns out that if you completely remove any value for fee-related earnings, and assume the other metrics are appropriate, you get a total BAM value of $40.76; almost exactly current share price.

    In a way you can think of buying BAM's carried interest and invested capital at the current share price, with the fee-related business thrown in for free.

    This all suggests to me BAM is undervalued by the equity markets, and it makes me then think that they should not be using BAM stock as currency to buy BPY. Just use cash and debt rather than BAM stock.
    Bullish
  • R
    Rishi
    any thoughts on the timeline of bpy purchase? probable purchase price? major holder of bpy here.
  • M
    MeekPeezy
    Still a great buy at these levels. I'll never sell. 1 trillion in assets by 2025 is very likely
    Bullish
  • s
    steve
    I already own $BAM and $BEPC. Up a ton in the last year+

    Should I start a position with BIPC? I want all of this Brookfield money making machine
    Bullish
  • j
    jack
    These posts sound great, but why did it drop over 5% today when the TSX dropped only 1.4%. Probably BAM is heavily invested in Commercial and Retail space. With people working remotely and shopping on line, BAM has head winds ahead.
    Neutral
  • L
    Lol
    It is like mini berkshire hathaway, but even better- it pays also the small dividend which they raised to 0.13 cents from 0.12.
    Bullish
  • J
    Jeremy
    Why the sharp drop?
  • m
    mike s
    I got in at under $39 (for less than $1k total). I imagine this will fall in the $30's again - I'll even be at a loss, but I will likely increase some holdings. REITs are going to be hurting a while; the MFool articel touting them today (NNN, FRT, PSG) concerns me, I tend to be contrarian on many of their articles. It may pick back up. It may have a while before it 'picks back up,' BUT I seriously think we are kidding ourselves if we think "normal" will ever be back regarding commercial properties and brick-and-mortar shopping...
  • W
    Will
    Again I really don't understand BAM's strategy here. They are selling 15 million shares of BEP from there holdings, their most valuable and growing investments, while they hold on to the declining oil and gas assets, buying back their declining retail properties BPP. It makes zero sense.
  • L
    Lol
    slow and steady gains, my favourite stock
  • M
    Matthew
    This stock will easily reach $60+ per share come March
    Bullish
  • M
    MeekPeezy
    Buy more BAM! my largest holding. THE COMPOUNDING MACHINE
  • C
    Chad
    Brookfield Renewable Corporation
    I'm still ride or die with renewables for the next 20 years. The company structure is weird, no doubt. I'm equally invested in $BAM, which hopefully mitigates some of the weirdness. I don't know why Brookfield chose to sell some of their holdings at that particular price, but my hope is it is a short term blip and will have no effect on the stock price even three months from now. I bought a little more on this dip.
  • B
    Bunny
    Market Cap (intraday) 5 64.76B, Enterprise Value 3 294.31B. I was looking at BAM but not comfortable with its high leverage ratio. Companies can get into trouble when sponsors pull money out when the economy is under stress or in financial crises. Isn't 4 times leverage high? Also, it is above two times book value, and opaque to me, whereas I can own prime financial real estates with the Dream Office REIT office REIT, easily estimate it is under valued, and with approved redevelopment location with lots of growth potential and below book value bargain.
  • J
    Jonathan
    bam
  • J
    Jason
    Excellent earnings. Should see a pop
    Bullish
  • z
    zarkon
    BAM!
    Bullish
  • W
    Will
    BROOKFIELD INFRASTRUCTURE ANNOUNCES INTENTION TO ACQUIRE INTER PIPELINE LTD. FOR C$16.50 PER SHARE IN A TRANSACTION VALUED AT C$13.5 BILLION

    What the hell??? Buy more oil assets, a declining industry. What is the end game here?