The recent infusion of riches doesn’t seem to have improved BAM Split’s ability to service its preferred shareholders to any great extent.
I have estimated that the ex-date of the current dividend should be tomorrow, August 20, but it has still not been declared.
The company has made something of a fetish of forgetting to declare dividends and at one point declared dividends on some, but not all, of their issues outstanding
I have sent an inquiry to the company at ir@brookfield.com. Readers may also wish to contact BAM Investments and ask why a company they control is so screwed up.
BAM Split Corp. has the following preferred issues outstanding: BNA.PR.B, BNA.PR.C & BNA.PR.D. All are tracked by HIMIPref™.
Update, 2009-8-20: The TSX is now reporting that the ex-Dividend date for the current distribution was yesterday, August 19.
Yesterday, of course, they were reporting only the last ex-Date, 2009-5-20.
Anybody who bought yesterday in expectation of receiving the current distribution has cause for complaint to the company – it won’t get you very far, mind you, but you can complain.
Update, 2009-08-21: I have received a communication from BNA claiming that the dividends were declared in May and included a dividend payable on BNA.PR.A, which has been redeemed.
I have responded seeking clarification regarding the dividend payable on the redeemed security, and asking why the TSX is reporting a declaration date of 8/18.
stocktrends.ca Recommends CPD
August 18th, 2009Skot Kortje of StockTrends.ca has published a piece in the Globe and Mail touting CPD that, sadly, shows more of the perils of slipshod research and technical analysis (“technical analysis” is its own pejoritive) than anything else:
As has been mentioned here before, CPD no longer reflects the broad preferred share market; it is heavily overweight in FixedResets and lower-quality retractibles. An investor might prefer this asset mix, to be sure, but the implicit claim that CPD reflects the broad group of preferred shares is simply false.
As of the close last night, CPD had a weighting of 25% in OperatingRetractibles, which doesn’t reflect any broad group of preferred shares I’ve heard of lately. Its 19% weighting in issues rate Pfd-3(high) or lower doesn’t ring any bells either.
Technically true, if we care about Current Yield – which we shouldn’t. With over 50% of the portfolio in instruments – OperatingRetractibles and FixedResets – which have a Current Yield well in excess of their Yield-to-Worst, it should be clear that today’s Current Yield is not sustainable.
Nonsense. The correlation of preferred shares with financial common equity is pretty low – about 0.2. It rises in times of financial stress – like August 1998 and November 2009 – but the correlations of a great many asset classes rises in times of financial stress. A much more defensible statement would be ‘As the corporate bond markets go, so goes CPD’.
None of this should be taken as implying that CPD is a bad investment. It can be very useful for many investors and presents its own selection of attributes with varying degrees of desirability … none of which are discussed in the article at issue.
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