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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 17, 2013 12:18am
282 Views
Post# 21913367

Bankers low valuation should have a buoyance effect

Bankers low valuation should have a buoyance effectIf Bankers was trading at a premium valuation like 6 times cash flow or EV/CF of 6 yes if crude dropped significantly the share price would tank. However Bankers is in the opposite situation and trading at an ultra low valuation for a company with 226 MMBBBLs of reserves net debt of less than $60 million, a cash flow multiple of a measly 3.4 times current cash flow and 3.15 times next years cash flow (at current prices) and an EV/CF of just  $1057 million/$285 million = 3.70.
So in my opinion, if crude drops, the company would trade at a higher valuation and the share price not drop that much. Look at the valuation of other sectors of the TSX. Quality companies like Bankers are trading at rediculously low valuations because the market is building in a potentially lower crude price already IMO
Bullboard Posts