Canadian Life Companies Split Corp T.LFE.PR.B

IAG gets hammered at the open...

[mouserman]

I guess the market didnt like the divvy hike... or there is something  very negative that wasnt highlighted in the news release.

[Higherhopes2020]

Short sellers?  They brought it down even though profits was up! Under 200K trades so far. 

[mouserman]

Well looks some shortselling likely today, altho i am not sure that was the early dumpers... ANON the biggest seller by far , and that normally denotes those selling wanting to be ANONYMOUS for obvious reasons. House Positions for C:IAG from 20240221 to 20240221 House Bought $Val Ave Sold $Val Ave Net

[NoShoesNoShirt]

Yeah IAG is having a bad day, and it falls on a bad day for the market. They threw out all the bad news and they threw in the kitchen sink. Looking at the chart shape, IAG even with a 10% haircut is still in an uptrend. Froth is gone, but this drop is no worse than the last few.  If you have any gonads, you may see this day as a buying opportunity. 

[flamingogold]

Far fetched to say today is a bad market day. All North American indices are down less than 1% and some are even close to flat.

[flamingogold]

Where the "bad" issue lies is in individual equities. Some tech equities are getting hammered today like Palo Alto and Teledoc (down 25%) and other high profile techs 10%. Overall, though the Nasdaq is down about 0.6%. Similarly Canadian lifeco's are getting hit in the teeth but the TSX is down only 0.4%. This is the risk of non-diversification which LFE is exposed to.

[mouserman]

LFE had a huge jump last week, up 49 cents in one day, and that is the  good part of being only in lifecos and banks.... the bad part is when the correction happens , as it seems like  lifecos are overbought, even if their fundamentals remain good with high interest rates. Always seem to trade at a discount no matter how safe they are ...i suspect they will do the same as they have been

[azzurri]

Hey Mouseman. What do you have the end of day NAV at for LFE following today's downturn for the insurers? How many cents towards the NAV do you feel the end of month dividends from the insurers will bring?

[mouserman]

If we added in the dividends coming on ex divvy date, the gain would be about 16 cents  in UNIT NAV... LFE finished the day @$15.04 UNIT NAV..

[azzurri]

Just to be clear. If the ex dividend date was yesterday, then LFE's NAV would have been estimated at $15.20? Appreciate it Mouseman!

[NoShoesNoShirt]

exdiv is the 29th.  Dividends were declared on the 15th. 

[azzurri]

Sorry I wasn't specific enough. I meant the upcoming dividends from the underlying insurer holdings adding roughly 16 cents to the NAV. I see from mouseman's posting that those will be gobbled up by the upcoming div payment to preferreds and class As. Good news is, no deterement to LFE's NAV for this payment cycle attributable to dividends.

[mouserman]

Yes for instance FTN will pay out just over 20 cents in distributions to preferreds and commons, and dividends received by the end of the month will not come close to that... might be 5 or 6 cents worth as they dont have a lot of  dividend concentration  in late february. Whereas LFE has most of theirs in late FEB. MFC for instance holds about 27% of the  LFE UNIT NAV... so a big