Post #5 by Manlobbi on the Manlobbi's Descent board

Investment Strategies / Manlobbi's Descent

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Dear Manlobbi

Would love to hear your perspective on the latest Brookfield spin.
The sell-off in the BAM feels somewhat predictable from the standpoint of existing shareholders seeing a small number of the new BAM shares show up in their account and selling (as I mistakenly did some years ago with a previous Brookfield spin and later regretted).
The asset management model seems less susceptible to the ups and downs of the commercial real estate market than overall Brookfield, but perhaps comes with new risks.
Have you done any IV calculations on the new companies?
Thank you again for creating these new Boards
Cheers

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I recently bought a small position in BAM when it traded below $40. After the split I sold BAM and bought more BN because I thought BN was too cheap vs. BAM, so far so good. Longer term BN is certainly the better business but price does matter. With BAM down 16% today I'll have to rethink this. Every time I hear Flatt speak I want to sell but so far this would have been a mistake, I doubt that I can ever make this big position though.

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>With BAM down 16% today

I am extremely interested to calculate the intrinsic value of the new BAM and the BN given the quote changes. With such large quote changes, this has no relation to changes in actual economic value. I'll have to wait before I investigate more deeply.

There is also a discussion starting about this on the Brookfield Corporation board:
http://www.digitalscores.com/MB?pid=426664621

- Manlobbi

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Thank you for creating these boards Manlobbi! Eternally grateful.

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