BNB.to Valuation of holding co.

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FCCT

Wondering how to set a reasonable valutation. Should it trade above/below net asset value?

Bam Investments is a leveraged play on BAM brookfield asset mgnt.

It holds 37 millions BAM-a.to shares.

From their Q4 NAV is $256 now.

Market value of the shares are about $294

Perhaps a major discount for lack of liquidity on BNB.to although 100 or 200 shares can go a long way for retail traders


I figured if its a leveraged play it should be trading above nav.
http://finance.yahoo.com/q/bc?s=BNB.TO&t=3m&l=on&z=m&q=l&c=bam

http://finance.yahoo.com/q/bc?s=BNB.TO&t=6m&l=on&z=m&q=l&c=bam
 
A $1.00 change in the value of Brookfield's Class A shares results in a $4.65 change in the calculated net asset value of a BAM Investments common share.

So for every dollar they lose, you'll be losing at least $4.65......


Hence the price action. I test a simple trading system and it exited on Feb. 26, 2007 due to the price change in the stock.

NAV doesn't really apply under a leveraged circumstance like this, as far as I can tell.
 
Well in less than a month it rallied close to 80 points!
Glad I took 5 pts on my 200 shares at $241 :)

Another interesting play
GRSR
solar stock play, there's a big meeting tomorrow, should clear alot of things up, otcbb listing, market maker selection, 2006 annual report, possible Q1 2007.
Its a sketchy situation, GRSR is an umbrella corporation. Downside limited 40 cent stock. Sould be a mover tomorrow.
 
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