Q: hi all:
i know you folks don't look at charts (much) yet the fact is BN has been in a downtrend (lower highs, lower lows) for 18 months
$40 looks like long term support
if $40 does not hold, this is likely going to $32-34
with apparent good results, i have no idea why the company's price is performing so poorly, yet maybe its opaque accounting is finally catching up with them?
thanks for all your valuable insights over the years
i know you folks don't look at charts (much) yet the fact is BN has been in a downtrend (lower highs, lower lows) for 18 months
$40 looks like long term support
if $40 does not hold, this is likely going to $32-34
with apparent good results, i have no idea why the company's price is performing so poorly, yet maybe its opaque accounting is finally catching up with them?
thanks for all your valuable insights over the years
5i Research Answer:
With no specific announcements it is always hard to nail down an exact reason for a stock move. BN goes through periods of investor love and hate, but has performed over time. It is very cheap at 11X earnings now, considering its pedigree. There is a lot of concern on its commercial real estate exposure, but we do not see this as as big a worry. We think once it starts deploying more capital investors may take more interest.