Opinions
Benj Gallander
GMP Capital Trust Inc
GMP-T
HOLD
Sep 26, 2017
$2.610
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PAST TOP PICK
(A Top Pick Apr 18/18, Down 28%) Still would buy it. Likes their special dividend at end-2018 and they have started a regular 2.5-cent dividend. Revenues were down last quarter $38.5 million, but things will improve going forward. They report soon. He likes this a lot. Their oil/gas is doing better, but not cryptos. They're getting big into cannabis. Someone could take them over, because the cannabis space is palatable, thereofre GMP is. However, some of their top people are being poached by other companies.
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HOLD
He owns the common stock and the preferred share. They have sold off their resource business side of their brokerage business. They are in wealth management only now. TD took a run at them a few years ago and it could be a possibility in the future. He will continue to hold it.
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PAST TOP PICK
(A Top Pick Dec 24/18, Up 23%) They had sold off their resource and energy components. They are holding only the wealth management business. He still has them on his list, but he is not sure how things will go forward. The Richardson family may not have the best interests of investors in mind. Less clarity on this one going forward.
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BUY
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Investors responded positively to news that avoids a proxy fight for Richardson, which they will fully take over. They are expected to buy back $40M which will result in greater per share earnings leverage. Unlock Premium - Try 5i Free
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Bought this last April at over $3, and it has come down since then. They have a few problems such as dealing with some lawsuits. One is obviously a rogue trader who was putting people into investments that were too risky for them. This is possibly going to court, and he doesn’t know how that is going to work out. GMP Capital has 2 sides. One is the energy side where they raise money for energy and mining companies, which has not been a great side. The other side is Richardson Securities, wealth management, which has been absolutely wonderful for them. Thought they would be taken over. He is quite content holding this, and can see how it can do a triple from this level. They had a lot of competition, but a lot of it has either folded or merged, so there is less competition.