Canadian Banc Corp T.BK

BK unit nav to DEC 29 @ about $20.34

[mouserman]

So the spreadsheet saying BK gained about 8 cents since the mid month update, and that means the common shares have a value of 10.34 before distributions and about $10.10 after distributions are dished out.
Premium then would be $3.13 or about  31%. Only DFN has a higher premium that i have seen.

[navgod]

Because Bk.pr.a trades at a small premium the premium for BK is even more impressive vs DFN where DFN.pr.a trades at an 80 cent discount. This is no surprise given the 8% coupon for BK.pr.a and the 5.5% coupon for DFN.pr.a. Given the disparity between the values of the pref shares I find using unit NAV comparisons more valid than common shares alone. ps I feel like I have been calling for BK new

[mouserman]

Yes , good call , with the high premium BK likely to garner some interest in an offering. However i do believe DFN is the most likely to do one, as i would imagine by now the level of preffereds compared to commons has gotten out of whack . Likely to need an offering where more preffereds are part of the equation than commons in attempt to level up the A shares vs Preferreds.  40%  

[Markyp]

I really appreciate the posts, I have learned a lot from you on these split shares.  One thing that is confusing me on the dfn situation that your describing is would the offering be beneficial to the stock price or negative. Sounds like the preferreds are a a discount so I am making an assumption this would drive up the price? I'm not sure so that's why I'm asking. 

[mouserman]

Normally the commons take a beating when the offering comes along , as it amounts to dilution. But in DFN's case, selling shares at the highest premiums , gives it an inflated real value. Some consider that  a good policy, altho buyers in the offerings are NOT really getting a good value if they consider where the NAV is. I dont think the Preferreds of DFN will be affected much unless

[Kadiddelhopper]

Interesting on your final line, where the Preferred Share count must equal the same number as the Common Share count... My question being what causes it to become out - of - whack?  Is it the Comapny Offerings that are one-sided too many times? As you can determine, I am still learning or gleaning all the info I can find in the odd snippets of conversation.  . Appreciate a response in

[mouserman]

With the ATM programs running, those using  that can buy either commons or preferreds.  I think in most cases they buy the commons with a fairly safe 15% distribution, rather than the preferreds which usually had a 5 or 6% coupon until lately. And in offerings generally they sell units which consist of 1 preferred share and 1 common shares. However there is nothing stopping those unit

[Kadiddelhopper]

Thanks MM...apreciated.