Brookfield Office Properties Inc T.BPO.PR.A

Short Interest In Light of Bruce Flatt's comments yesterday.

[Carena]

Good morning,

I find it interesting that this BPO board lit up yesterday (and every 2 weeks for that matter) to discuss short interest and why it is up or down (and for good reason!), and at the same time I am reading a Globe and Mail article titled...

"Brookfield CEO says institutional investors have less interest in ‘distractions’ of public markets"

and Bruce Flatt is quoted in the article as saying....

 “Public markets is just the ownership of a fractionalization of a business, but most people get confused because they think it is a casino.”

Firstly, there is no question that Bruce Flatt saying "MOST PEOPLE", he is talking about us small investors on this BPO board and it is actually highly insulting to all investors.  

My Conclusions:

(i) This is the precise reason why I have said previously I have less conviction in Brookfield going forward. Brookfield gorged on the public capital markets for 20 years when interest rates were near zero and now that things are tougher, Bruce is calling everyone idiots.  Very bad look, in my opinion.

(ii) I have a friend who always reminds me that the market capitalization of Brookfield Corporation is somewhere between Ross Stores and TJX Companies in the S&P 500.  His point is Brookfield is a small fish in the S&P 500 and we Canadians pay way too much to what he has to say.

(iii) Make no mistake, Bruce Flatt is under pressure these days to perform and the shine is coming off his reputation.    The facts are, he gorged on "Permanent Capital" and all he has to do, for example, is to redeem our BPO prefs at $25 per share and us "idiots" will move on...right?  The ceasing of NCIB activity in the BPO prefs  looks ridiculous in light of his comments yesterday. 

(iv) I have benefitted from the privatization of BOX.UN, BPO, RSE, GGP, BRP and a bunch of other shareholder friendly actions by Bruce Flatt and Brookfield but as I have said previously, Brookfield is a "Show Me" story now.

I continue to watch Brookfield very closely.

Have a great day,
Carena

[wynner]

I too watch Brookfield closely. I totally agree with him regarding the stock market being a casino. I also agree with anything else he says OR may say in the future. I like thinly traded stocks that MAY become private and get out of the rat infested markets. Because of boredom in retirement I continue to own a few stocks. Mostly Mutual funds . Everyone have a good day (and opinion).

[Carena]

Hi Wynner,  Really appreciate your thoughts.  I have made great returns on thinly traded stocks.   I have a very strong view that "most people" think the stock market is NOT a casino.  I am a believer the capital markets in the western world have been an unbelievable wealth creator for small investors like me and much more so for people like Bruce Flatt. &

[wynner]

I don't read Pref Blog. Not for any patricular reason. I just like my OWN opinions. Why fix something that is not broke. As we say to the (White shirts).

[Carena]

Let me re-phrase one of the sentences in this last post..... Firstly, there is no question that Bruce Flatt saying "MOST PEOPLE", he is talking about small investors, like us on this BPO board, and it is actually highly insulting to all investors.  

[wynner]

Bruce is not talking about me and retail investors.  He IS talking about the hedge funds and the swarms of options traders and bots. Most means the biggest controlers. imo.

[Carena]

Hi again, He said "most people"..... that is us, the meme stocks, hedge funds, the entire space.  In fact "most people" are not even "investors".  His words though.   Anyways, I am still very long Brookfield, but as I have been saying, I have less conviction on Brookfield. Carena

[wynner]

That's fine. Option trading is not investing in my view. Neither is crypto. I did work in a casino in Mayfair , London for a few years in my 20's. I think some guys left to become stock traders. I hear they (burn out ) by 30. We are still living in the free world.  I don't believe the polls either. BTW.

[wynner]

"After a torrid few years, sentiment in London’s commercial property market appears to be improving.  On Thursday, one of London’s biggest landlord’s GPE said it would raise up to £350m to invest in new properties across London. " https://www.cityam.com/why-londons-commercial-property-sector-is-finally-booming-back/?utm_source=CityAM&utm_campaign=952f5a8930-EMAIL

[SONOFFERGUS]

Demonstrably weak Canadian retail longs?   They don't know who they're up against now lol!

[SONOFFERGUS]

GM Carena. Two things can be true: (1) public valuations can be pulled way out of whack for prosaic businesses like the ones BN invests in when *everyone* who gets benchmarked has to chase returns in pending tech wreck 2.0 (which I think is more what Bruce was talking about); and (2) life for big money managers sure is easier when there is no market price to defend. Are fund managers using

[Carena]

Hi Sonoffergus, All great points and I appreciate your input.  Your 2 "things" are absolutely spot on.  However, your 2 "things" have been around forever and not sure why public markets are no longer a great thing as Bruce has espoused in previous shareholder letters.  No company in Canada has ever tapped the public markets the way the Brookfield Group has in

[SONOFFERGUS]

Did you find any rabbit holes or Easter eggs out there? Bruce is threading a needle -- great for capital raising, terrible for recognizing the immense value of the BN complex.   I bet he thinks about taking all or parts private with his OPEC friends.  Hmmm.

[Carena]

Hi Sonoffergus, I totally forgot about the Easter Eggs ....lol. I would be very happy if Bruce put a huge privatization behind his disdain for public markets....he could start this with redemptions for all the BPO prefs at $25 per share! Have a great night, Carena

[Carena]

Good morning, I was reading an article in the Globe and Mail this morning about how the Canada Pension Plan has underperformed its own stated "Public" Market Index benchmark since 2006 and the only people who ultimately benefitted were its overpaid professional managers.   Oh yes, the public markets are a "casino".  Instead, lets all own opaque (ie private

[wynner]

I read that too. I have to say that investing exclusively in Canada or even just Quebec or Alberta would be financial Hara Kiri. I would be underperforming the S&P 500 if not for my US stock funds. Opaque. I have a company pension that pays a small fixed monthly stipend. I have NO idea what's in it or where the money comes from. I did ask. No real answer.

[Carena]

Hi Wynner, Good for you on your S&P 500 success......money managers have touted the 60/40 portfolio and being defensive (eg telecoms, pipelines etc) when in fact the S&P 500 has blown everything else out of the water since the GFC. "No real answer"! Lol.  Public markets hold the "experts" accountable, which is why Bruce Flatt's commentary was unsettling to me