Financial 15 Split Corp T.FTN

FTN - what's the back story here

[marcrobert]

haven't owned this one yet.. the big mystery in the chart is what happened from $26 in 2018 to 18 before covid, down to 6 in mar 2020 and only maxed out at 12 afterward. what happened? at the peak in feb 2022, there was a 5 year price performance delta of 80% between ftn and sbc class A.

Anybody know the story?

[mouserman]

FTN and SBC are quite different as SBC is only basically the big 6 CAD banks , and a small percentage in the BROMPTON financial etf which holds some banks and a lot of insurers , from both the US and Canada. FTN is primarily about 50% in CAD banks and lifecos, and about 30 to 40% in US banks. So SBC and FTN are quite different in that regard as far as the make up of the funds.  The other

[EdPaquette]

The banks dragging on FTN are goldman sachs, Citigroup,  JPMorgan,  bank of America,  etc.  Are they down forever?  They never recovered from 2008 and i think they will recover soon. 

[dannodotcom]

There was a share consolidation in Nov 2020, for every class A share you owned, you would now have only 0.4 share.  So if you had 1000 shares, you would now own only 400.  That's why the chart looks a little strange if you are looking at prior to the consolidation, such as a 5 year chart.  The share price was NEVER at $26 but was in the $12 area, and has never quite recovered

[navgod]

The consolidation was caused by the large retraction of pref shares at par going into FTN's extension. I was playing the prefs into the retraction but missed the real action which would have been a short on the capital shares. I think everyone was surprised by the large % of pref that were redeemed. Many posters here only scratch the surface of the intricacies of split shares. An example would

[SgtBroski]

Will FTN ever recover from it's 2020 share consolidation (back to high 12s pre-consolidation or high 20s post consolidation) via a stock split or natural increase in stock price? It feels like no matter what interest rates environment we are in, the stock continues to have downward pressure. Thanks in advance for your insight. Mouserman is da man! 

[marcrobert]

Thank guys, fantastic insights... i guess i must have ignored ftn because of US bank exposure years ago, did not remember it was US bank heavy. top 3 holdings are US end of may. I have done very well with brompton. buying a lot at bottoms in 08/09 and 2020. I trimmed a lot early 22, and am planning to go the covered call + leverage route to dip back in and diversify away from split shares, but

[mouserman]

Well maybe the biggest drag on FTN common shares performance is the big payout to  preferreds , (NOW getting 8% yield on those at current prices) and the big .1257 payout to commons . Total is about 19 cents per month. ONLY BK would have higher payouts, with over 23 cents to preferreds and commons now. LCS only .075 a month for commons, would likley not be paying now if they had to dish out