Bullboard - Stock Discussion Forum Brompton Split Banc Corp T.SBC

Alternate Symbol(s): T.SBC.PR.A

Brompton Split Banc Corp. (the Fund) is a Canada-based mutual fund company. The Fund's investment objectives are to provide holders of Preferred shares with fixed, cumulative, preferential quarterly cash distributions and to return the original issue price of $10.00 per Preferred share to shareholders at maturity and to provide holders of Class A shares with regular monthly cash distributions... see more

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TSX:SBC - Post Discussion

Brompton Split Banc Corp > SBC unit NAV has gained 50 cents since OCT 1

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Post by mouserman on Oct 06, 2020 4:58pm

SBC unit NAV has gained 50 cents since OCT 1

LAst stated UNIT NAV for SBC was 18.11 on OCT 1 and my spreadsheet shows a gain of .50 since that date... so now at 18.61
The Commons would now have a value of of about 8.60 or so and last trade at 8.63 means this ultrasafe split fund is trading almost right at NAV.
Compare that to DFN which trades at over a 25 % premium to NAV, and at the moment is not above the 15$ threshhold on the unit nav to pay to commons...
Never mind FTN and FFN and many others who trade above the NAV and are miles from paying.
This anomaly of course is caused by the recent offering, as with many of these split funds the commons sell off immediately after the offering is announced .
It is the underwriters shorting the stock and then covering later at a lower price with the shares they get at a discount in the offering. Once the covering begins , it is usually quite a fast ride back up.

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Comment by ThatAlbertaGuy on Oct 07, 2020 9:54am

The anticipation of this stock jumping up is killing me . I know it's going to happen just sucks watching everything else rise while we sit at 8.70..

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Comment by EdPaquette on Oct 07, 2020 10:07am

All the excess supply has been sopped up now. We should be over 9 within a week. Probably 10 by black Friday.

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Comment by impega on Oct 07, 2020 2:02pm

I know what you mean Alberta Guy. I am sure the fund manager can't wait to deploy the newly raised funds in to the undervalued banks. Could the banks appreciate 25% or more over the next year? I think so.

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Comment by ThatAlbertaGuy on Oct 07, 2020 3:03pm

Well most banks have another 15% to go to hit pre pandemic levels so can they appreciated 25 over a year I would for sure without a doubt . Just heartbreaking when lbs is up so fast on not even a gauranteed div payout and this one dogs it in the 8 range . I got to call Costco about returning my crystal ball lol

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Comment by flamingogold on Oct 07, 2020 3:15pm

A lot of LBS investors are actually playing right now for the potential capital gain from the huge gap that could be filled with a distribution announcement. The gap is between $5.40 and $7. The euphoria will overshadow the premium to NAV. Reality will eventually set in and it will sell off. However, even at $7 it will be ok once we get past covid. SBC and even EIT don't move as fast but offer ...more

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