Brookfield Property Partners L.P. BPY

BAM acting like the Fed

[Desto44]

By declaring a $12USD bid for a substantial chunk of shares BAM took a page straight from the Fed. They've essentially created a price floor to ensure liquidity during a time of illiquid price volatility. When the Fed first announced their market facilities it took a few days for the market to digest the vastness of their intervention. I think the same is happening here. Considering BPY has a huge outstanding short position the pressure to the upside must be pretty strong. Oddly enough just as with the Fed, this could be one of those self fulfilling price moves associated with money waiting on the sidelined to get in and just needing that vote of security/support in order to start the ball rolling. Either way, it's a brilliant move by BAM management and sends a serious message to short selling speculators going forward. Don't mess with Brookfield.

[Castortroy2020]

Indeed a great move but I am still confused should I still hold on to my shares or should I sell it? I bought BPY when it was close to mid 20's... Even if it goes private I am still gonna be under water!

[Desto44]

I'm waiting to see how this bid is received. Based on the large number of short sellers I can't see it being fully subscribed but sentiment is terrible towards retail and office RE right now so who knows. I personally think this pandemic, though serious, is just another black swan shock where everyone believes nothing will ever be the same but then sooner rather than later everything

[thenewsnake]

They probably expect the SP and REITS to go back up in the upcoming months, if they didn't, they would have been wiser to just continue a NCIB everyday to get it cheaper.    Its a bold move

[Capharnaum]

It's a neat move for BAM, they get assets at half value. For the shareholders, while it's higher than currently depressed share price, it's still low in value. Imo they should have went for a higher premium.

[Desto44]

I really think this was aimed at burning the short sellers and I expect they don't believe they will get many bites at 12USD. The reason they didn't bid higher is because the goal here isn't to take BPY private, it's to stabilize the share price and support shareholders. At least that's what I believe based on the price, the size, the timing and what was said in the last