Q: Hello
Brookfield Corp stock has been drifting lower after making a high of $85, despite strong results. We started a position just before and after results were announced with an average price of $81.50, for a long term hold.
Do you consider $78 to be a decent level to add some shares or wait for a further pull back ? Not sure if following was a reason for the downward pressure, today.
It was reported by a news website EI confidential that Brookfield intends to offer EUR 7 Billion, to buy Spanish Drug maker Grifols with an offer of EUR 10.50, below the price its trading now.
Thank you
Brookfield Corp stock has been drifting lower after making a high of $85, despite strong results. We started a position just before and after results were announced with an average price of $81.50, for a long term hold.
Do you consider $78 to be a decent level to add some shares or wait for a further pull back ? Not sure if following was a reason for the downward pressure, today.
It was reported by a news website EI confidential that Brookfield intends to offer EUR 7 Billion, to buy Spanish Drug maker Grifols with an offer of EUR 10.50, below the price its trading now.
Thank you
5i Research Answer:
BN shares are consolidating a bit after their 48% gain this year. With Russia/US/Ukraine tension heating up, we might suggest $75 to $76 as a better add price in the short term. Other than that there has been no negative news. With $150B in capital, we would expect lots of M&A activity from the company and we would not isolate its recent overtures as the reason for any weakness. Market cap is $130B so the proposed transaction is relatively small for the size of the company.