We think investors are looking too closely at daily trading and not enough at the long term here. Certainly higher interest rates are not great for the company. Markets have recovered, and it is sitting on a lot of capital waiting for attractive buyout opportunities (which lessen if markets are strong). But BN is up 6.2% this year, not including the dividend, and is slightly outperforming the TSX. With its various spin offs througout the years, the stock has created substantial shareholder value. Its holding company structure and accounting can confuse some investors, but looking at per share earnings they have nearly doubled since 2016 (to 2024 estimates). Cash flow is substantial but investors want to see more deals. It has had a couple of rough weeks, but still not a stock that concerns us much: its time will come.
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