Friday, November 28, 2008

Brookfield Asset Management 2

Brookfield Asset Management is on Mike Higgs’ list at and is on the Dividend Achievers list at

There has been a lot of insider buying lately, especially after the price of this stock dipped below $30.00 and this, of course, is a very good sign. No one expects this stock to earn as much this year as last year, but there is a big variation in what the earnings will be. The ratings on this stock go from Hold to Strong Buy, but the majority are at the Buy rating. Everyone seems to expect the stock price to be higher in 12 months.

Looking at the positives for this stock, the Dividends have been raised this year. The current P/E at 16.7 is slightly lower than the 5 year of 17. The dividend yield is at 3.5%, which is higher than the 5 year average of 1.5%. The current price of $18.53 is getting close to the Graham Price of $17.51. The Accrual Ratio is at a much better .52% than it was at the time of the last Annual Statement

A negative for this September 2008 quarter report, is that the Asset/Liability ratio is slightly lower at 1.12 than at the end 2007 where is was at 1.17 and the 5 year average of 1.18. Also, the Return on Equity (ROE) is at 10.9% compared to the 5 year average of 20.3%.

Looking at the charts, this stock has not done as well as the TSX or the Real Estate Index for periods under a year. For Periods 5 years and over, it has done better than both these indexes. For a 3 year period, it has done better than the Real Estate Index, but worse than the TSX.

This Canadian Asset Managing company invests in and operates a variety of assets for its own behalf as well as co-investors. It is focused on property, power and infrastructure assets. It operates in Canada, US and internationally. The subsidiaries of the Company are Brookfield Homes Corporation, Brookfield Properties Corporation, BPO Properties Limited, Multiplex, Brookfield Power Inc., Great Lakes Hydro Income Fund, Brascan Brasil, S.A., Brascan Residential Properties, S.A. and Brookfield Investments Corporation. Its web site is See my spreadsheet at I have reloaded my spreadsheet to include the September 2008 quarterly report.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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