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Afternoon Alert: Brookfield Asset Management inches higher, resistance at 12-day EMA 18 January 2018 12:16 EST

NEWS BITES - NORTH AMERICA

Brookfield Asset Management Inc. (TSX:BAM.A) has increased 0.1% but fell short of the 12-day Exponential Moving Average [EMA] of CAD53.67.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Brookfield Asset Management put call ratio decreases 61.1%, stock increases 1.2% January 17, 2018 17:00 EST

Brookfield Asset Management Inc. (TSX:BAM.A), Canada's largest Real Estate Services company by market cap, has increased 66.0c (or 1.2%) in the past week to close at CAD53.57. Open interest contracts on exchange traded options included 1,587 put contracts and 7,917 call contracts. The put:call ratio was 0.2, down 61.1% for the week. The decrease is a bullish indicator. Compared with the S&P/TSX 60 Index which rose 3.9 points (or 0.4%) in the week, this represented a relative price increase of 0.8%. In the past week the market cap has risen CAD652.1 million.

1.2 5-day Recap

Brookfield Asset Management outperformed the S&P/TSX 60 index in 4 out of 5 days.

DayHeadlineClose price [CAD]Price change %Relative change %Comment
WednesdayBrookfield Asset Management rises for a second consecutive day, a two-day rise of 1.3%53.571.00.8Top Rise
TuesdayBrookfield Asset Management inches higher, resistance at 12-day EMA53.050.30.7
FridayBrookfield Asset Management rises for a second consecutive day, a two-day rise of 0.8%53.340.30.2
ThursdayBrookfield Asset Management rises with rising open interest53.20.50.2

Note

DayHeadlineClose price [CAD]Price change %Relative change %Comment
MondayBrookfield Asset Management decreases, drops 2.1% for week52.9-0.8-1.1Steepest Fall

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Equity 19.0% [2.6%]

Return on Assets 2.1% [1.1%]

Overvaluation:

Dividend yield of 1.4% [2.3%]

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US billion42.5In Top 2%
Today's Volatility %0.5In Top Quartile
1-month Range (in CAD)52.1-57.0

SECTION 3: Earnings

FY2016 Annual Report: Brookfield Asset Management keeps sliding: EPS down 52% in 2 years

Brookfield Asset Management (TSX:BAM.A), announced EPS of $US1.55 for the year-ended 31 December 2016, down 31.4% from $US2.26 in the previous year. In the last two years EPS has declined by 51.6%.

Major changes compared with previous year:

Favourable Changes:

- Total revenue up 19% from $US21.6b to $US25.7b

- Interest expenses to Sales down from 14.2% to 13.2%

- Sales and marketing expenses to Sales down from 0.5% to 0.4%

- Fixed Assets to Total Assets up from 26.7% to 28.4%

- Current Debtors to Total Assets up from 5% to 5.7%

Unfavourable Changes:

- Net profit slumps 29.5% from $US2.3b to $US1.7b

- EPS slumps 31.4% from $US2.26 to $US1.55

- EBIT Margin down from 38.6% to 25.5%

- Interest cover down 29.3% from 2.7 to 1.9

- EBIT to total assets down from 5.5% to 3.9%

- Profit before tax to Sales down from 24.4% to 12.3%

- Debt to Equity up 6.3% from 2.4 to 2.5

- Retained earnings to total assets down from 7.9% to 7.0%

- Total Liabilities to EBITDA of 21.4 compares unfavourably with the Joseph Piotroski benchmark of less than 5. This ratio has deteriorated by 56% from the previous year's ratio of 13.7.

- Total Liabilities to Operating Cash Flow of 29.2 compares unfavourably with the Joseph Piotroski benchmark of less than 4. - Net tangible assets per share down 5.8% from $US18.03 to $US16.99

Note:

- Total revenue to total assets steady at 0.2

- Total liabilities to Total assets steady at 0.6

- Long-term investments to Total Assets down from 50.4% to 49.5%

- Intangibles to Total Assets up from 5.5% to 6.2%

- Current Inventory to Total Assets down from 3.8% to 3.3%

SECTION 4: Recent News of Brookfield Asset Management

January 15: Brookfield Business Partners L.P. 2017 Fourth Quarter Conference Call and Webcast for Investors and Analysts

Date: Monday, February 12, 2018

Time: 11:00 a.m. (Eastern Time)

BROOKFIELD NEWS, Jan. 15, 2018 -- You are invited to participate in Brookfield Business Partners' (TSX:BBU.UN) (NYSE:BBU) 2017 Fourth Quarter Conference Call & Webcast on Monday, February 12, 2018 at 11:00 a.m. (Eastern Time) to discuss with members of senior management our results and current business initiatives.

Results will be released on Monday, February 12, 2018 prior to 8:00 a.m.

January 11: Brookfield Asset Management Announces Proposed Offering of Notes

TORONTO, Jan. 11, 2018 -- Brookfield Asset Management Inc. ("Brookfield") (TSX:BAM.A) (NYSE:BAM) (Euronext:BAMA) today announced that it is commencing a public offering, subject to market and other conditions, of US$500 million of notes due 2028 (the "2028 notes") and US$250 million re-opening of 4.700% notes due 2047 (the "additional 2047 notes" and, together with the 2028 notes, the "notes").

The additional 2047 notes will form the same series as the already outstanding US$550 million principal amount of 4.700% notes due 2047 (the "existing 2047 notes"), which were issued on September 14, 2017.

January 11: Brookfield Asset Management Announces Pricing of US$650 Million 3.900% Notes Due January 25, 2028 and US$350 Million Re-Opening of 4.700% Notes Due September 20, 2047

TORONTO, Jan. 11, 2018 -- Brookfield Asset Management Inc. ("Brookfield") (TSX:BAM.A) (NYSE:BAM) (Euronext:BAMA) today announced the pricing of its previously announced public offering of notes due 2028 (the "2028 notes") and re-opening of notes due 2047 (the "additional 2047 notes" and, together with the 2028 notes, the "notes").

January 05: Brookfield Business Partners to Acquire Controlling Interest in Schoeller Allibert in Partnership With Schoeller Group

BROOKFIELD, NEWS, Jan. 05, 2018 -- Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) ("Brookfield Business Partners"), together with institutional partners (collectively "Brookfield"), announced today that it has entered into an agreement to acquire a 75% controlling interest in the Schoeller Allibert Group B.V.

January 04: Brookfield Business Partners to Acquire Westinghouse Electric Company

BROOKFIELD, NEWS, Jan. 04, 2018 -- Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) ("Brookfield Business Partners"), together with institutional partners (collectively "Brookfield"), announced today that it has entered into an agreement to acquire 100% of Westinghouse Electric Company ("Westinghouse" or "the Company"), a leading global provider of infrastructure services to the power generation industry, which is currently owned by Toshiba Corp.

The transaction provides for a purchase price of approximately $4.6 billion, expected to be funded with approximately $1 billion of equity, approximately $3 billion of long-term debt financing and the balance by the assumption of certain pension, environmental and other operating obligations.

"Westinghouse is a high-quality business that has established itself as a leader in its field, with a long-term customer base and a reputation for innovation," said Cyrus Madon, CEO of Brookfield Business Partners.

Brookfield Asset Management Inc. (T:BAM.A; TSE:BAM.A; N:BAM.A; CN:BAM.A)

ISIN: CA1125851040

PermID: 4295861073

CIK: Brookfield Asset Management Inc.

Source: www.BuySellSignals.com