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Bullboard - Stock Discussion Forum Financial 15 Split Corp T.FTN

Alternate Symbol(s):  T.FTN.PR.A | FNNCF

Financial 15 Split Corp. is a mutual fund company. The Company’s investment objectives with respect to the preferred shares are to provide holders of preferred shares with cumulative preferential monthly cash dividends in an amount fixed by the board of directors on an annual basis. Its investment objectives with respect to the Class A shares are to provide holders of Class A shares with... see more

TSX:FTN - Post Discussion

Financial 15 Split Corp > Average share price discount
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Post by Golferman on Jan 17, 2025 6:53pm

Average share price discount

As a point of interest:

 

 I also have been tracking the closing discount for the common share for the last 45 days…. The average discount for the last 45 days to the Nav is 10.8%….. this would give us a share price of:

 

11.13 X  (1-.108)  = 9.928

 

So using todays NAV with the average discount we should be trading around $9.92 for a commons share price….. Still a good buy…. Also closer we get to Ex-day we are usually trading much closer to the NAV.

 

Golferman

Comment by Stoiklaugh on Jan 18, 2025 8:45am
Interesting! thanks for sharing!
Comment by Master1917 on Jan 18, 2025 12:35pm
We all would expect the discount converge to NAV and then go further into the premium, if past performance is indication of future results, but we all seeing somethingbvery different. Is average premium / discount available over each calendar year?
Comment by deisman03 on Jan 19, 2025 3:48am
I don't see why people expect to see a "premium" paid for common units? You're being paid to take the extra risk with an increased distribution, some of which is ROI, and when times are bad, the distribution being waived, until they get better.  You're making your "capital gain" every month in the distribution.  That's why I don't believe these ...more  
Comment by rixpix on Jan 19, 2025 7:55am
I think the reason they used to trade at a premium is because prime lending rates were holding steady at roughly 2% for quite a while, until rising rates and inflation fears took over in Sept 2023 and made investors panic sell at market prices. The way I see it,  they've bought back gradually since then, but the interest rate fear still exist hence the discount in NAV. 
Comment by deisman03 on Jan 19, 2025 1:26pm
The charts don't agree with you, but it's possible GLTA the good folks here
Comment by mouserman on Jan 19, 2025 9:26am
I dont believe u can find the average discount. BUT over the past 15 years, ( excluding pandemic and 2024) the only discounted stocks  were those commons shares below the threshhold for paying. And even DFN was under the threshhold and still getting a premium for a short time, Those above the threshhold with 2 $ of safety generally got a premium . UP to a 40% premiium at one point for DFN ...more