{"id":840,"date":"2007-05-09T13:47:15","date_gmt":"2007-05-09T17:47:15","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=840"},"modified":"2007-05-09T13:47:15","modified_gmt":"2007-05-09T17:47:15","slug":"bamprn-a-ticking-time-bomb","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=840","title":{"rendered":"BAM.PR.N : A Ticking Time-Bomb?"},"content":{"rendered":"

The previously announced<\/a> new issue of BAM 4.75% Perpetuals started trading today under the symbol BAM.PR.N … and I can’t believe my eyes!<\/p>\n

I was expecting it to trade in the $24.50 area, simply because that’s where the BAM.PR.M issue promptly slumped to immediately after the new issue was announced … the price level is not a surprise.<\/p>\n

The surprise is that it’s now 1:30 pm, only 5,500 shares have traded, and the market is quoted at 24.60-64, 3×7<\/strong>. 3×7? On a new issue? 5,500 shares?<\/p>\n

Together with the drop in price being so pre-ordained by the behaviour of BAM.PR.M, what this is telling me is that the underwriters haven’t sold a whole lot of shares. I can’t state that as a definite fact and I’m not the Oracle of Delphi, but that’s my interpretation and I’ll bet anybody who likes an entire dime<\/em> that I’m right.<\/p>\n

I suspect that this one will have an Inventory Blow-Out Sale, just like SLF.PR.D did last fall<\/a>. Maybe early June, but I won’t bet any money on that part of the prediction. In the mean-time, I urge extreme caution when buying both BAM.PR.N and its twin sister BAM.PR.M … at least until the situation clarifies.<\/p>\n

The HIMIPref\u2122 database has been updated with the new issue information – BAM.PR.N has been assigned the securityCode<\/a> A41223, replacing the preIssue<\/a> code of P43000. A reorgDataEntry<\/a> has been processed to reflect the change.<\/p>\n

Update<\/strong>: Closed at 24.50-60, 3×19, on volume of 9,400 in a trading range of 24.50-75.<\/p>\n

At some point, I’m going to do some research on “First Trading Days”. This must be some kind of record.<\/p>\n

tick … tick … tick …<\/p>\n

Update<\/b>: This issue has been added to the PerpetualDiscount Index<\/a>.<\/p>\n

\n

\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The previously announced new issue of BAM 4.75% Perpetuals started trading today under the symbol BAM.PR.N … and I can’t believe my eyes! I was expecting it to trade in the $24.50 area, simply because …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,10,13],"tags":[],"class_list":["post-840","post","type-post","status-publish","format-standard","hentry","category-data-fixes","category-index-construction-and-reporting","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=840"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/840\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}