Power Corp (POW.TO)

People are constantly trying to measure their NAV on a go forward kind of basis. It is their exposure to IGM that has been pulling them back and where they have lost market share. Dividend yield of close to 4.5%.

(Top Pick Sept 22, 2014 down 4%) Still owns it. Reason he picked it was that it's holdings are worth more then it's stock price. After the passing of Paul Desmarais he thought the family might start selling and things would get interesting. Neither has happened yet, he's still hopeful. Still getting a good yeild on the stock, he's prepared to be patient for a while.

(Market Call Minute.) Have pulled back inexplicitly, so this would be a good Buy.

(A Top Pick July 3/14. Up 10.6%.) Had bought this when he thought the dividend was too cheap. They came through and the stock has improved. If you look at the sum of the parts, it is worth $39.50 a share, but he thinks it’s worth a lot more intrinsically of $45-$48.

The market doesn’t really believe the balance sheet. There is stuff on there that the market doesn’t believe should have value. There is a new regulation coming in called CRM2, which will disclose to clients how much they are actually paying in terms of fees. This will put pressure on Investors Group as well as other mutual funds. If customers know how much they are paying, the market is discounting that. This is what he would be leery with on this name.

(A Top Pick July 3/14. Up 12.3%.) Had been looking for a return to dividend increases since 2009, which has finally come about. Still very cheap. Trading at a discount to NAV.

A lot of moving parts in this company. A huge power in life insurance, but also huge in the managed money business through Investors Group. The latter had kind of a crappy quarter and lifecos are still having trouble making money with low bond yields. He bought this because eventually people are going to make money on bonds again. Also, thinks there is a possibility of something big happening in the company following the demise of the founder Paul Desmarais. It is trading at a reasonable price.

This is a company that would do well against the background of rising interest rates. It also has some decent exposure to Europe. Dividend yield of about 3.5%. Lots of upside potential, over 100% of his FMV. Dividend yield of 3.44%.

Thinks there is a Possibility for them to Increase the dividend in 2015. Great West Life (GWO-T) is overdue and expects it would come in the 4^th quarter. They are now starting to see growth. This is one that people would be in for safety and dividends, with the hope that there is some growth.

He likes that this is a diversified name, but at the end of the day this stock will be very closely correlated as to how the market does, primarily because of the asset management side of the business. For all of the asset management businesses, he feels that the easy money has been made. However, this is a name that you can own as part of a portfolio and you are getting paid a good dividend to wait, but be realistic on growth expectations for the share price.

Chart is showing a consolidation. Don’t buy it until it breaks out on volume. Around $36 is the resistance, and if it moves through that several days on volume, it would be a great Buy signal.

Power Financial (PWF-T) or Power Corp (POW-T)? He owns this one, so he must think this is the better buy. They both trade at a discount to their NAV, which is Great West Life (GWO-T), IGM Group and then a whole bunch of European assets. With this you get a little more in assets. However, he thinks there is going to be a dividend increase very shortly for both of them. Feels this is dirt cheap, and thinks you could see $35-$38 and other catalysts.

A financial conglomerate. For a long-term hold, you are pretty safe. They have a nice portfolio of businesses. She prefers a more direct play.

Went down because of bond yields and because of investor’s group management because stocks went down and so then their fees went down. He thinks the stock is cheap and the dividend is sustainable. He would recommend being at the top of the pyramid because if value is released that is where it will happen.

CI Financial (CIX-T) or Power Corp (POW-T)? This is struggling. Pays a 4% yield. He would wait for this to trade at about $30.31, but it is the cheaper of the 2.