TOO - Teekay Offshore Partners L.P.

[BG2008]

I sold fairly quickly after they announced the deal.  To me, life is too short to get in bed with people who may back stab you.  As I get older, I have learned to appreciate what a great advantage of being able to "back the truck up" when stock prices get cut in half is.  I think it is one of the key reason why value is a valid strategy in the long run.  If you trust the business quality, the management team, and their capital allocation skills, when the shares sell off by 30% because volume is down 2-3%, it is a great time to back up the truck and buy.  With TOO being dark and the Brookfield potentially screwing you, I would rather own a HHC, DuPont, or Charter.  These managers take care of capital allocation for you. They won't back stab.  We have gone the opposite direction in the last few years where institutions favor illiquidity.  Investors now pay for lack of volatility.  In the last couple years, I have learned that you can wind up owning a lot more of a company if you hedge properly ahead of time for very little cost.   

 

Sour grapes?  Sure.  But shame on me.  I got fooled.  As an alternative, you can also own something like a Midstream Pipeline company with a 10-20% yield today.  A lot of those are in the dumpster.  At least you get liquidity and current yield which helps to lower your cost. 

[Gregmal]

Yup, basically. As Ive long stated, I dont think Brookfield is a short. But when you look at the ridiculous run up in share price, the lack of margin for error, the completely opaque accounting, the fact that they're spending like drunken sailors, and the fact that when there is a dollar on the floor their behavior is only, maybe comparable to something along the lines of Brock Turner around a drunk girl....and yea, I dont want my safety net to be hopes and prayers that they'll take care of the minority shareholder.

[lnofeisone]

BG - I'm totally with you. At this point, I am treating this is a learning/entertainment exercise. I already got a 300+ page thing sent to me for free and expect, nay, demand! BAM to send me more ;D. I, too, was hoping for a better outcome, took a loss on the position after they upped the deal, and cut my position by 3/4.

[BG2008]

Brookfield was less than friendly during the GGP rehabilitation process.

 

Yes, GGP was bought by BAM without any premium. A lot of investors were rightfully upset. BAM could do thwt be sure they owned a considerable amount of GGP (~35%?) to essentially discourage any other potential bidder.

 

Anyways, I think this deal might come back to bite BAM because they still overpaid as it turns out.

 

Part of the reason why I never got on the BAM and BPY train was because of Brookfield's involvement in the mall business.  It's not secret that I do not like that business.  I spoke with a young intern a few years ago when Brookfield bought the B malls of Rouse and he said "Yeah, Brookfield doesn't really know what to do with that assets.  They are kind of internally confused about it." 

[Gregmal]

If the malls are the Big Short, is BPY the AA tranche? Something to think about...

 

While "They are kind of internally confused about it." is on the surface just a post from a guy supposedly quoting an intern, on the internet.... even a sliver of truth to that would have me shitting my pants if I was a holder of those securities. The pile of ???? regarding Brookfield continue to mount.

[Cardboard]

I don't know why this guy became sure a hero or Flatt.

 

Anyone who has been long enough recalls the old EdperBrascan or the ancestor of Brookfield. Back then these guys had amassed natural resources and for years the stock was despised or a conglomerate going nowhere.

 

Then Flatt comes along, liquidate all these former holdings for little gains and write-offs then capital is reinvested elsewhere and now we have a genius. LOL!

[Guest oakwood42]

I just read through this thread over a short period.  Wow, talk about insightful!

[John Hjorth]

If the malls are the Big Short, is BPY the AA tranche? Something to think about...

 

While "They are kind of internally confused about it." is on the surface just a post from a guy supposedly quoting an intern, on the internet.... even a sliver of truth to that would have me shitting my pants if I was a holder of those securities. The pile of ??? ? regarding Brookfield continue to mount.

 

It's all about portfolio composition. Just buy some SCHO.CPH also. SCHO.CPH has a subsidiary called Fibertex Personal Care. Japan is a growth segment [because of aging population - It's all about adult diapers.]