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Big Banc Split Corp T.BNK

Alternate Symbol(s):  T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.


TSX:BNK - Post by User

Bullboard Posts
Post by dbeaudeon Nov 18, 2013 2:17pm
298 Views
Post# 21916585

Let the guys take some profit!

Let the guys take some profit!These guys would like to capitalize a little to! Even if Brent falls fo $95 next year, Bankers will produce ~22,000 bbbls per day. Their net back will be reduced to ~35-$38 per bbl so lets do some math. At $38 their operating profit next year would likely be around $305 million or $1.20 per share. At $35 the number will be $281 million or $1.10. So if we use a peer average multiple of 4.5 we end up with a share price range (at peer average multiple) of $4.95 to $5.40. If they end up getting screwed on valuation and trade at a measly 3.5 then the range is $3.85 to $4.20. Now that does not include the results of the secondary recovery pilots and if they are successful (and I do not think the company hired two seasoned heavy oil techincial extractioin experts for their looks) then the reserves value and pending production will get a nice boost and so will the share price
Bullboard Posts