Portfolio Manager & Publisher, Linde Equity Report at Linde Equity Report
Member since: Feb '14 · 1182 Opinions
We are in a relief rally because of the 90 day pause in tariffs announced today. However in the recent downturn and following rally, insider buying has been very quiet. Even when the market was down by 19%, insiders didn't think it was enough. Retail investors have been doing most of the buying, outnumbering sellers by 4 to 1. The question is how long can this last. He feels today's momentum could last another day or two before a pullback. As to the market in general, 90 days from now we'll know more.
They recently announced agreements with two robo taxi companies. Amazon's model is one app for everything, all sellers, and Uber could replicate this system which would be significant. Robo taxis are already running in California, Also in Austen Texas where Waymo's robo taxis have 99% more riders than cars with drivers, but at this this point there are only 100 driverless cars. There are several advantages to driverless cars including the response to calls is immediate.
It holds a dominant position in the natural gas and LNG market. It has less leverage than some other pipelines and is self-funding from free cash flow. It has entered into a joint venture for a data base to be built on their land. Has a good dividend of 5 to 5 1/2% and the risk/reward is quite attractive. A comment was made that the telecoms are lagging even with falling interest rates.
You could buy this but it would be better to buy the parent company, Brookfield Corporation (BN) instead, for a long term hold and outlook. BN owns 75% of BAM and has a better valuation. It has had a 15% compounded return over 10 years and expects 17% in compounded earnings. Insiders generally own shares of parent companies.