Author Topic: BAM - Brookfield Asset Management  (Read 310299 times)

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #970 on: March 17, 2019, 08:51:15 AM »
... I think he's too conservative on earnings growth. ...

vince,

"He" [<-?] -Kyler [CoBF member khturbo] is is the author of the blog post. [ ;- ) ]
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai


ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #971 on: March 17, 2019, 11:29:45 AM »
What a brilliant acquisition by BAM management and co ... really love this move.  What I would like to see now is more aggressive buyback at the parent level; similar to what Mr Flatt has written about in the past.  The operating businesses are throwing off so much cash right now...I would like to see management become even more defensive from a cash level, and holding company level...things are really good globally (for now) - and can turn quickly (think 4th quarter of 2018).  BAM is one of my largest positions - but the stock I think in the near-term as gotten ahead of itself. 

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #972 on: March 17, 2019, 12:13:17 PM »
... , and since they're done with the growth initiatives, ...

Kyler,

Where do you get that personal perception from?
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

villainx

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Re: BAM - Brookfield Asset Management
« Reply #973 on: March 18, 2019, 06:13:10 AM »
... , and since they're done with the growth initiatives, ...

Kyler,

Where do you get that personal perception from?

Trying to translate some of BAM and sub's discussion, 1) stuff are not cheap; 2) focusing more on tuck-ins and puzzle pieces; 3) cycling through assets; 4) their size; and 5) focusing on buybacks. With Brookfield, there's always surprises, and they can react to global markets changes, so something transformative might always happen. But at the moment, they seem to be regrouping.

no_free_lunch

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Re: BAM - Brookfield Asset Management
« Reply #974 on: March 18, 2019, 09:42:28 AM »
What a brilliant acquisition by BAM management and co ... really love this move.  What I would like to see now is more aggressive buyback at the parent level; similar to what Mr Flatt has written about in the past.  The operating businesses are throwing off so much cash right now...I would like to see management become even more defensive from a cash level, and holding company level...things are really good globally (for now) - and can turn quickly (think 4th quarter of 2018).  BAM is one of my largest positions - but the stock I think in the near-term as gotten ahead of itself.

It seems a good acquisition to me as well.  Hopefully the combined names are able to attract capital to each other that they might not otherwise have.

I am not sure about buybacks at this point.  I don't feel BAM to be particularly undervalued.  If anything buying heavily with stock seems the better move.   I think there will be opportunities to deploy cash ahead.

khturbo

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Re: BAM - Brookfield Asset Management
« Reply #975 on: March 18, 2019, 09:48:01 AM »
... , and since they're done with the growth initiatives, ...

Kyler,

Where do you get that personal perception from?

Yes, good point. To clarify, I was referring to the parent. It seems to me that credit was the last big platform they wanted to have. With the acquisition that's now built out. I don't see anything that's going to require a huge amount of capital for the parent at this point. Flatt has said as much at certain points in the last few quarterly letters.

Brookfield entities will certainly still be investing over time but a lot of that will come through raised capital or retained earnings at the LPs. The parent is on a $2.5bb+ run rate of FCF and they don't have much to invest in by themselves. They'll put some money into the new RE fund but will have plenty left over.

I don't know, do you guys see any other places where the parent needs to invest? We've also now consolidated everything in BPY so there's not a big need for capital there either.

vince

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Re: BAM - Brookfield Asset Management
« Reply #976 on: March 18, 2019, 10:09:10 AM »
... , and since they're done with the growth initiatives, ...

Kyler,

Where do you get that personal perception from?

Yes, good point. To clarify, I was referring to the parent. It seems to me that credit was the last big platform they wanted to have. With the acquisition that's now built out. I don't see anything that's going to require a huge amount of capital for the parent at this point. Flatt has said as much at certain points in the last few quarterly letters.

Brookfield entities will certainly still be investing over time but a lot of that will come through raised capital or retained earnings at the LPs. The parent is on a $2.5bb+ run rate of FCF and they don't have much to invest in by themselves. They'll put some money into the new RE fund but will have plenty left over.

I don't know, do you guys see any other places where the parent needs to invest? We've also now consolidated everything in BPY so there's not a big need for capital there either.

How did you determine 2.5 billion in fcf?  Are you subtracting dividends? You are including Oak's cash flows too right?

John Hjorth

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Re: BAM - Brookfield Asset Management Inc.
« Reply #977 on: March 18, 2019, 10:11:08 AM »
Thank you for the elaboration, Kyler,

Perhaps I was reading the sentence of yours a bit out of the overall context. I agree with you about BAM's overall operational fields now appear to be complete.

We have had discussions earlier in this topic about where opportunities for growth most likely will be, and I recall infrastructure being the guess by some fellow board members - a guess on which I personally concur. To me it appears evident, that BIP can't handle such growth by itself - if it's material - going forward. Some of that demand for capital then - if it becomes actual - has to be met by the parent.
« Last Edit: March 18, 2019, 10:12:52 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #978 on: March 18, 2019, 10:54:27 AM »
Its interesting that a couple of people have mentioned tooday is not a great price for buybacks ($46) but management has said units are worth about $51 (if I recall correctly from last presentation). Is a greater discount desired or is managements valuation too rosy?
« Last Edit: March 18, 2019, 11:23:23 AM by chrispy »

cubsfan

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Re: BAM - Brookfield Asset Management
« Reply #979 on: March 18, 2019, 12:30:48 PM »
Its interesting that a couple of people have mentioned tooday is not a great price for buybacks ($46) but management has said units are worth about $51 (if I recall correctly from last presentation). Is a greater discount desired or is managements valuation too rosy?

I think the last management presentation said there calculation of BAM IV is currently $62.