Brompton Lifeco Split Corp T.LCS

Now $15.93 lifecos doing better % wise than banks

[mouserman]

And still somehow the market gives the best valuations to split funds holding mostly banks, and not the lifecos which have been the best performing  financials the past 4 or 5 months. With downgrades to US banking system, mainly regional banks, it is a better move to be in the lifecos. Many analysts agree with this.

[Experienced]

Good points.. Here's the way I look at it.. 1....I am very happy to pick up an undervalued stock and get paid 15% waiting for others to eventually figure it out. 2....the splits with big premiums run the risk of huge capital losses if the market goes against them whereas buying LCS at a discount gives some additional downside protection.  As well, the big premiums also lead to new

[navgod]

Agree with most of your points -- only correction I would make is that new issues are not allowed to be done at a discount to NAV. This does mean there is currently no risk of a new issue for LCS. Even after  redeeming a large block into the annual retraction LCS is still by far my largest holding. GLTA

[Experienced]

Thanks navgod - meant to say a discount to SP.  You absolutly correct that an offering below NAV would be a violation of securities law.

[kurtwalter]

LCS is highly volatile and failed to pay a dividend for many months in 2022. According to the Brompton site NAV on May 11 was 5.79, price today is 5.65, so discount is certainly not large. BK is pretty stable, may trade at a premium of 27%, but has hardly missed any dividend payments. So I have a large position in BK and a smaller position in LCS.

[mouserman]

The 5.79 quoted on Brompton was the close on thursday, MAY 11, and included the preferred portion ,, which wont be paid for 2 months, as those are paid Quarterly at Brompton. Last night the close showed the unit nav at $16.01 and after preferreds are taken away the NAV of commons stillwould have been $5.95. Please use your math skills to figure the discount  OR even easier , read my posts. BK