Ted Macklin CI Financial Corp CIX-T BUY Feb 26, 2004

It took on lots of debt at low interest rates which has given it some balance sheet trouble. It has sold some holdings. There isn't growth but debt is OK now. It is exceptionally cheap at 3.9X 2024 earnings. Pays a dividend of 5.6%. He bought some last week.

A massively levered company, though the business does well and gushes cash glow. But they spend a lot of money to buy asset manager businesses. That has not panned out.

Aggressive acquisition hunt for the last decade. Tough to be an independent in Canada, as Canadian banks control so much of net worth. He'd rather own the banks with their broader diversification. Warren Buffet says "A lousy industry will beat great management every time."

There have been management changes and it pushed too hard into the U.S. It has a good dividend yield of 5.4% and is buying back stock

Building US business dramatically, planning to take public sometime in the future. Canadian side is well run, but the mutual funds business hasn't grown in years, perhaps 10% a year. Big dividend. Combining both sides of the business should garner a $35 stock price easily, $50 if they really tried. Yield is 4.6%.

Well established Canadian investment firm. Has watched for a long time, but never attractive enough to justify investment. Good management team with good capital allocation. However, better names in portfolio. 

Are very different asset managers. CI's balance sheet is not good. Prefers BAM, but shares have risen to a high valuation. Great managers and earnings stream (asset management fees).