This month, Brookfield Business Partners LP (TSX:BBU.UN) agreed to a joint venture with Great Canadian Gaming Corp. (TSX:GC) to run three Ontario-area casinos, in a deal that would see each partner own 49% of the joint venture for the Ontario Lottery and Gaming Corp. casinos.
This deal was cheered by the broader market on the announcement, and shares of Brookfield have correspondingly taken off, increasing approximately 5% since the announcement.
Investors wondering whether this is just the beginning of the party when it comes to Brookfield or Great Canadian Gaming, or if shares will eventually reset to pre-deal levels are looking at all outside factors which may influence a decision to buy, hold or sell shares of either firm.
As it turns out, insiders within Brookfield appear to be very bullish on the deal, with director Trish Zuccotti buying $50,000 U.S. of Brookfield's stock after the announcement, at a price currently higher than where the stock is trading today.
While this may seem like a small amount to some traders, a $50,000 purchase following an announcement in which many investors believe all of the upside is priced in makes an interesting case for why Brookfield, or Great Canadian Gaming for that matter, may still be strong buys at this point in time.
Investors still do not know the finer details of the arrangement between the two firms (everyone is going off of what they know via the company's press release), however following those with the inside track in times where little information is floating around may turn out well, in this case. Just maybe.
Invest wisely, my friends.
