Author Topic: Canadian Prefs  (Read 44824 times)

no_free_lunch

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Re: Canadian Prefs
« Reply #110 on: June 24, 2019, 11:26:31 AM »
I like the core BAM preferred's.  There are higher up the chain as best I can tell so more diversification and safety on the dividend.  In particular I am looking at BAM.PR.S right now.  It gets adjusted quarterly, for better or worse and currently yields close to 7%.   It would have to rise 50% to get back to it's high water mark in early 2018.   Obviously that could take years (or a few months) but getting 7% (give or take) while you wait is not bad.  The main risk is that we get into a europe type situation and the government yields drop down to near 0.  However, you would still be getting 5%+ and that would be a good dividend in a 0 rate world, as long as brookfield can survive.


longlake95

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Re: Canadian Prefs
« Reply #111 on: January 08, 2020, 11:26:13 AM »
Has anyone seen any interesting mis-pricings in the prefs lately. I currently own AZP.A and BPO.P. I'm looking to park some more $$$ in prefs while I wait for lower equity prices. The FFH's seems to offer some value.

LL

longlake95

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Re: Canadian Prefs
« Reply #112 on: January 15, 2020, 10:22:22 AM »
any low vol Canadian pref ideas to park some $$$ for a bit ( until the next market hissy fit )? I think BCE has some monthly pays.
« Last Edit: January 15, 2020, 10:36:35 AM by longlake95 »

Rod

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Re: Canadian Prefs
« Reply #113 on: January 15, 2020, 12:12:49 PM »
any low vol Canadian pref ideas to park some $$$ for a bit ( until the next market hissy fit )? I think BCE has some monthly pays.

I like the Dundee prefs (DC.PR.B/D--$15). I suspect Dundee will soon announce a substantial issuer bid for them. They are in the process of obtaining a loan, and their stated #1 capital allocation priority is buying back prefs. The logic of doing so is rock solid. An SIB announcement would likely see them bounce by $1 or so. I also think they are a good long term bet.

longlake95

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Re: Canadian Prefs
« Reply #114 on: January 15, 2020, 12:24:16 PM »
Thanks Rod, I owned the DC.D sometime ago. I'm not up to speed on DC. I did worry about the underlying business. I think they have a better balance sheet now due to higher gold prices and their ownership in DPM. Buying back these discounted prefs does seem like a no brainer.

bskptkl

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Re: Canadian Prefs
« Reply #115 on: January 16, 2020, 07:11:42 AM »
Dundee already buying their prefs under NCIB. But NCIB/SIB for its shares would be more accretive.

From last Q:

During the nine months ended September 30, 2019, the Corporation purchased 61,000 Preference Shares, Series 2, having an aggregate stated capital value of $1,525,000, for cancellation pursuant to these arrangements. The Corporation paid $891,000 to retire these shares. The excess of the value of stated capital over the purchase price, which totalled $583,000, was recorded as an increase in retained earnings.

During the nine months ended September 30, 2019, the Corporation purchased 3,800 Preference Shares, Series 3, having an aggregate stated capital value of $95,000, for cancellation pursuant to these arrangements. The Corporation paid $56,000 to retire these shares. The excess of the value of stated capital over the purchase price, which totalled $39,000, was recorded as an increase in retained earnings.
« Last Edit: January 16, 2020, 07:14:49 AM by bskptkl »

Rod

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Re: Canadian Prefs
« Reply #116 on: January 16, 2020, 08:41:16 AM »
Dundee already buying their prefs under NCIB. But NCIB/SIB for its shares would be more accretive.

From last Q:

During the nine months ended September 30, 2019, the Corporation purchased 61,000 Preference Shares, Series 2, having an aggregate stated capital value of $1,525,000, for cancellation pursuant to these arrangements. The Corporation paid $891,000 to retire these shares. The excess of the value of stated capital over the purchase price, which totalled $583,000, was recorded as an increase in retained earnings.

During the nine months ended September 30, 2019, the Corporation purchased 3,800 Preference Shares, Series 3, having an aggregate stated capital value of $95,000, for cancellation pursuant to these arrangements. The Corporation paid $56,000 to retire these shares. The excess of the value of stated capital over the purchase price, which totalled $39,000, was recorded as an increase in retained earnings.

Yes, but they are too cash constrained to continue buying right now, hence the idea of getting a loan against the value of their DPM shares and using that to make a more substantial bid