Canadian Banc Corp T.BK

Question: why the October 23 drop

[kurtwalter]

I am rather new to split shares, and bought BK around August 2023. In the next two months BK dropped close to 30 percent. My question to mouserman and other experts: what explains this drop? Was there an extreme premium on BK's share price, as compared to the NAV?  Thank you.

[mouserman]

No it was all to do with the NAV deteriorating and pullback in financials. Premium was quite big back then, and of late no split fund commons share  is getting much of a premium. I see FTN, which is another high yielding split fund, which holds the same stocks as BK, plus some others. FTN has over 3 $ of safety for paying to commons, and BK has 5$ . With the bigger yield , i would think FTN

[deisman03]

NAV is just the symptom. It's what caused the NAV to deviate from the highs that is behind this symptom.  NAVs are very good for short term investing, IMHO, but not for long term investors.  I'm in your camp when it comes to using NAV as a guide of when to buy and sell, but I also like to watch for signs that will hopefully predict future NAV as much as possible.  GLTA