Joshua VargheseBrookfield Asset Management Inc.BAMCOMMENTJul 09, 2019

The latest low and latest high (this year) were both lower than the previous ones, so we may have a potential downtrend. Maybe. Be cautious with this.

The Brookfield stocks have done well recently. BAM can be decent for calls. You can sell the $60 call to April for $1.20; you're adding 2% yield and still leaving upside.

We think the discussion of BAM moving its head office to the US has helped, as it has been undervalued relative to US peers. This is why the company split in the first place, so it is good that the move has worked so well. The market is strong, of course, which helps, as do interest rates. But the breakout is still nonetheless impressive. Deutche Bank raised its target today to $59 (US$). It is, as always, involved in several transactions but there has not been any unusual news of late. But investors see the Trump win as favourable for the group overall. 
Unlock Premium - Try 5i Free  

Are very different asset managers. CI's balance sheet is not good. Prefers BAM, but shares have risen to a high valuation. Great managers and earnings stream (asset management fees).

He owns infrastructure renewables as the best way to own some Brookfield companies. He is watching BAM but doesn't own. The units have a tax advantage for Canadian investors. It has a higher dividend yield and stability. A good hold.

Unfortunately, Brookfield is looking like the old Brascan empire, a plate of spaghetti, where they spin off all these entities, then buy them back and it's hard to keep track of how many there are. That said, BAM and BN-T are grossly undervalued. The market is overreacting to the impact of commercial real estate BN-T, in particular. 

BAM and BN-T are the top Brookfield stocks. BAM has huge leverage forward, so much money they manage. The market has been done on this during high interest rates and because of commercial real estate. Yes, some CRE buildings stink and won't do well, but others will be fine. If interest rates stop rising, Brookfield will have a lot of leverage. He's a big believer.

Very reliable dividend yield.
Good place for steady income.
Would recommend for long term hold.