Brookfield Asset Management INC [ BAM-A.TO]

Brookfield Asset Management INC [ BAM-A.TO]

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BAM is another stock that I had short listed as part of my initial screen for Fall of 2016. Let’s take a look at it some more.

  • This stock is currently trading at its 52 week high. That may not be a bad thing, but I always hesitate to trade stocks that are trading near 52 week highs.
  • It has a Yahoo one year target estimate of $43 dollars. This target may not be realized but it is a good starting point. That would be approximately about 21% return. This is for the shares trading on NYSE , however this gain should translate to the same shares trading on the Toronto exchange.
  • I like that this stock trades on the Toronto exchange . This reduces exchange rate risk when this stock is traded in a CAD based account.
  • Brookfield Asset Management is a combination of 4 partner companies. This article provides a good overview .
  • It has an analyst price target of $41 USD . Based on the current stock price that is a return of 14% . That is a decent return .
  • It does business in over 30 countries. A good way to get global exposure in your portfolio.
  • The reason I would hesitate to invest in this stocks are, an expectation of a recession and the uncertainty about interest rates .

I am going to be buying this for my RRSP. Despite the risk – I like the business the company is in. I for sure will be setting a sell target @ $41 USD or the equivalent CAD value when buying this stock.

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