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Compiling comments that experts make about stocks while on public TV.

2016-10-04

Opinion for Guardian Capital Group (GCG.A-T)

Signal Price Bias Subject Owned
TOP PICK $22.380 UNKNOWN CANADIAN MID-CAPS & LONG/SHORT STRATEGIES Yes

*Long* (Pairs trade with a Short on BMO-T). In 2001, they sold their mutual fund business to BMO in exchange for 5 million BMO shares. They sat on the 5 million for a while, but have started selling them and are down to 4.2 million. However, if you take the value of their BMO shares plus some of their other investments, it comes to $17.96 a share, and is trading at roughly $22.50, so there is not very much value in that stub. Because of this, you can pay a very healthy premium for the current share price if somebody came in. There really is a scarcity value of independent asset managers in Canada, so he expects that one day, if not BMO, that someone else will come in and take this company out.

Jerome Hass
Portfolio Manager, Lightwater Partners http://www.lightwaterpartners.com/home.html

1 Comment

barney11

January 24th 2017 at 5:37pm

WOW, Did you follow your own call on this one???


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