No. of Recommendations: 3
After the early August earnings announcement management came up with of course the ever increasing FFO figures. As is the norm the financial analysts who follow the Brookfield bunch all lined up with praise and most, given the 45% decline in the stock, heaped near euphoric comments as to buying the stock at current prices. And along the way I notice an equity sale and a less than specific description (to me...of course others who praise management will differ) of what's up or whatnot.
I don't think BEP is anywhere close to making its payout in real earnings. There's always something that can be sold and the gain added to FFO (again if you haven't read the options on FFO and DE you should), or another 5,000 odd-silly-and plain butt-stupid ways these figures can be attained.
In any event revenues stagnant or down and interest expense up add excitement to the Brookfield yard sale. I love the wordings of all things that to most of us with most companies, but only with other companies not Brookfield, are not-so-good. These descriptions of things like a capital raise are always positive spun by management even though if done by anyone else, even Buffett, they'be nothing but severely criticized. Capital recycling, asset recycling, upfinancing, step-change, equity issued to supplant, postitioned to fund long term, we advanced non-recourse financing initiatives, long sector tailwinds, normal course funding sources, de-risking asset sales, equity financing, raised via a bought deal and private placement, significant flexibility...the list of words and phrases that I can't really grasp (because Bruce doesn't want me or you to understand...he just wants you to believe.)
Of course for those reading this? Heck, I'm right back in the 90's with Belch at GE (and a few years of MF and BPY that nobody here is ever willing to admit or discuss given it got taken private by "us" thus the VASTLY under-valued stock according to all posters here but me just conveniently disappeard). Sophisticated high IQ types will simply do a long-long-and longer cut-and-paste of management jargon and wild-ass super-charged "WHAT A GREAT, OUTSTANDING, SUPER-DUPER QUARTER FROM BROOKFIELD...the stock buy of the century!"
A tad on the contakerous side this morning. Don't take me too seriously...I don't! LOL!
Oh, one last thing. I think with the Westinghouse thing? Well, any numbers are available for BEP in the near term. Make it up as you go and hope something down the road bails you out? THAT to me is the Brookfield way.
No proofreading, just conversation for me.
