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Brookfield Business Partners Units BBU

Alternate Symbol(s):  T.BBU.UN

Brookfield Business Partners L.P. is a Bermuda-based business services and industrial company. The Company is focused on owning and operating businesses that provide essential products and services. The Company's sole direct investment is managing a general partnership interest in Brookfield Business L.P. (Holding LP), through which the Company holds all of its interests in its operating businesses. Its segments include Business Services, Infrastructure Services, and Industrials. The Business Services segment leverages operational expertise and scale of the Brookfield platform. The Infrastructure Services segment provides services and products for large-scale infrastructure assets. The Industrial segment includes advanced energy storage operations, and engineered component manufacturing. The Company's operations are located in the United States, Europe, Australia, Canada and Brazil. The Company is a listed vehicle of Brookfield Asset Management’s Private Equity Group.


NYSE:BBU - Post by User

Comment by sam2100on Nov 18, 2018 6:46pm
71 Views
Post# 28992031

RE:RE:re: Some issues with BBU guidance..........

RE:RE:re: Some issues with BBU guidance..........Hey James, There was rally started Oct 30 where the stock price was $52 and there was peak Nov 2 at $58 and there was good volume. Nov 2 was the conference call and when BBU started describing their results, there was a sell off which I believe was a reasonable reaction. Remember BBU is reporting a sequential decline in revenue and their revenue also included 2 months of Westinghouse's earnings. I never stated that BBU has ever overstated their earnings in a conference call. I said that there is a disconnect between their earnings optimism in their event presentations vs their conference calls. IMO, BBU is too optimistic during their event presentations. This disconnect phenomena can be seen during their last conference call, where an analyst asked BBU about the Westinghouse earnings a quoted a specific amount. BBU responded by saying, be patient. The analyst responded "I am patient". Why was the analyst enquiring about this specifically, because BBU was very optimistic in their previous event presentation which was held before this conference call. As for the liquidity, I find it unlikely that BBU will use their expanded credit lines to make acquisitions, unless absolutely necessary. If you look at the size of the deals that they are making now in the billions, I believe that it is likely at some point that a stock issuance will be necessary.............................Bottom line is that it is the earnings growth that will drive BBU's stock price higher and the sequential quarterly results are currently not showing this. Very importantly, the companies that BBU has major positions in are now included in the earnings. My sentiment is echoed directly by the Scotiabank analyst who has cut BBU's stock target price and in a very polite way has stated "3) evidence of stronger-than-expected financial results at investments that were recently completed (e.g., Westinghouse) and/or those that we think have potentially significant growth potential in the near-term, but have not been observed yet (e.g., BRK Ambiental, Multiplex, Greenergy, Teekay)," said RBC"..............that is well phrased. This last point is my main point. Keep in mind, I am not bearish on BBU however it may take longer to realize growth from the companies that they hold a major positions in ie. BRK Ambiental, Teekay and Westinghouse. There probably will be significant growth in some of the companies that they hold small minority positions in ie. OLG. I'm quite happy to maintain my significant overweight position of BBU in my portfolio however my personal expectations are not to expect very large growth numbers in the near future. Is it possible that there could be strong growth numbers in the near future, for sure..............and at that point I'll be pleasantly surprised.
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