Brookfield Business Partners Units BBU

BBU structure does not work

[1northumberland]

They say the intrinsic value is much much higher but the stock just keeps collapsing.
Someone needs to tell the CEO of BBU and BN that this subsiduary structure  is broken
 

TAKE PRIVATE at intrinsic value before you lose all your goodwill with longtime investors.

im done with BN and all their off shoots.

[steavie]

I agree—I never liked the hefty fee structure as well (20% performance fee + 1.25% annual fee paid back to BN). They say the stock is undervalued, but don't buy back any shares. Then again, why would they when parent company BN collects the 1.25% annual fee whether BBU performs well or not.

[1northumberland]

The only two thing I would add is that there is a high water share price on BIP for parent company to collect more than the  basic management fee i believe the share price has to go over $32.00, which is miles away. BBU actually did buy a small buyback iwhen the stock was trading around $18.50 USD. BBU needs to be taken private by BN at a stiff premium from where it's trading at

[1northumberland]

High water mark on BBU share price. Company bought back 47,000 shares late August.