Power Corp (POW.TO)

MFC is the name in the Insurance space that keeps working. A few years ago, it was like that cough syrup -- doesn't taste good, but it works. Insurance companies are set to outperform banks. MFC is #1, SLF #2, POW #3.

His best guess is that GWO might be the best performer of the 3, though it's not particularly liquid but shouldn't be an issue for the retail investor. Insurance companies tend to do well in a rising rate environment, because it tends to discount their liabilities to a degree.

BCE is more like a bond, given less growth than POW. POW will outperform this year. Insurers have done very well in the past year. Great-West Life is 70% of POW, now trading at a 30% discount to NAV vs. its historic 15-20% discount, so should gain momentum on this alone. The insurers are a little better than the telcos now.

Good company, won't hurt you especially in a year like this. Why not buy something trading at 8.3x 2024 earnings, with a 5.5% dividend, 6% growth rate? 30% discount to NAV. 

Cost of capital in business creates a large opportunity. Overall, a large company with diverse asset base. Expecting better performance in 2024. 

A unloved stock since the founder died, but they have good assets while high interest rates have been a boom for insurance companies. The NAV is 25-30% higher than the stock price. Pays a 6% dividend.

Likes it. Tough Canadian financial markets over the last 5-10 years. Under the surface, valuations are getting more attractive, and there's light at the end of the tunnel. He wouldn't sell, but not the first name he'd put money into.

They simplified the management structure in recent years, resulting in shareholder value. Have assembled a good collection of assets, profitable at the market average, but a stronger balance sheet than average and pays a 6.3% dividend. Trades at only 9x PE.

Pays a good dividend, and they have some great businesses, like Mackenzie Financial whose performance has improved. GWL may have some issues, but good long term. Good that they sold US asset managers.

Owns shares in company. Predictive dividend income. Much clearer strategy than competitors in sector. Buying shares back and is executing well on strategy. Current share price a good place to buy with recent weakness. ~6% dividend yield very attractive. 

Major conglomerate.
Prefers to own individual companies in insurance etc.
If shares prices fall below $40 - good time to buy.
Good brands within company. 

His preference is for quality. He likes POW for dividend growth and share buybacks. A smaller asset manager might have higher return potential because it has more volatility, but POW will give him a higher Sharpe ratio over the long term because it's not as volatile. Closing gap to NAV. Ideal asset manager to park your money in. Owning POW makes it easier to monitor the subsidiary pieces. Yield is around 6%.

High quality. Diversified in financials, industrials, energy, and utilities. Solid, stable for the long term. Insurance, wealth management, investing. Strong management. 9x earnings vs. TSX at 13.9x earnings, but profitability in line with TSX. Strong balance sheet. Yield is 5.6%.

The stock is worth $45 if you add up all the parts and consider higher bond yields. Pays a dividend of 6%.

EPS of 77c missed estimates of 93c. Revenue was $13.47B. Losses in the alternative investment platform drove the miss. Still, NAV per share continues to increase. EPS per share rose 12c from last year. After years of weak growth, EPS growth is expected to pick up nicely over the next 24 months. The stock is cheap at 9X earnings and is doing well this year. We think it is buyable for income and some growth.
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