We note BBU has been (highly) cash flow positive for the past four years, and as noted book value is much higher than the current price. It is 'only' down 15% this year, and many have fared much worse. Its debt level ($44B net) no doubt scares off investors but it has assets ($89B) backing this up. It is still paying its distribution (1.7% yield). There has been a little bit of insider buying. We are probably getting close to the level where BN (owning 37%) is likely looking at it to take it private, considering the long term prospects moreso than investors only looking at high rates and a possible recession right now. It could be a value trap, but Brookfield entities tend to be pro-active when times are bad: it might just go on a buying spree. It needs to be considered higher risk, certainly. Its interest expensese are very high, and not likely to decline for a while. But, we agree it is getting interesting for higher risk investors who have a decent timeframe to hold. We do not think there is short term default risk here, assuming some assets can still be sold if conditions worsen.
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