RE:Premium is getting highAside from the annoying ads that clutter up these boards, SH is still the best resource for Canadian equities. Yahoo is barely passable while Reddit, Stocktwits to name a few are horrible options.
Obscure1 wrote: Back to SH from my visit to Reddit. Reddit is nuts. I posted some thoughts on Tesla the other day and the post got more than 34,000 reads and hundreds of comments that ranged from intelligent to some of them most ridiculous things I have ever read.
Based upon my quick calculation, the Unit NAV tonight should be $16.91**. That means the NAV for LBS should be $6.87 (they take off $0.01 per week to account for the $0.13 payable quarterly dividend to the prefs.
With the LBS share price at $8.54, the premium to the NAV should be about 24.3%. I only started following the LBS a week ago but my guess is that Brompton should now be in a position to do another Raise. That is important because Managers of Split Shares are not allowed to Raise new capital if the Raise dilutes the NAV. Unfortunately, we all know what happens to the share price every time a Raise happens. I'm hoping that Brompton won't do a Raise so close to the ex-dividend date (Friday Oct 28) as it would surely pisss off shareholders. Nobody would be happy with their $0.10 divy while the share price is down $0.60 or so but maybe Brompton doesn't care. I'm too new to LBS to know the answer. .
I assume the rapid rise in the NAV is due to investors warming up to the possibility of a potential dovish comment from JPow next week when he jacks up interest rates again.
FWIW, I'm not buying the optimism. I hope the LBS share price keeps moving up in advance of the dividend. I expect that I will be selling in advance of JPow taking an axe to the market one again next Tuesday.
I hope the MISS from GOOG after the market close doesn't screw up my plan to sell before JPOW speaks next Tuesday. In the upside down world of analysis these days where Bad News is seen as Good News, mabye GOOG's MISS will be viewed in a positive light. Who knows!
** my estimate of the NAV is not 100% accurate as I assigned 10% holdings to each security held in the LBS portfolio because I was lazy. FWIW, the number was exact to the penny last Thursday, but that could be beginner's luck