Power Financial Corp (PWF.TO)

A group of companies. He added to SLF-T instead. He has no problem with this one and it was one he considered. SLF-T has the strongest domestic franchise.

(A Top Pick Sept 25/13. Up 14.81%.) Likes this because it is a nice diverse company with insurance assets, management assets, etc. It also had a nice dividend.

None of the insurance companies raised dividends until this year. This is the opportunity. Finally we are going to see performance. He has been buying this hand over fist. You can own this or POW-T. See dividend increase next year for both, even this year maybe.

He definitely watches this one. Expects dividend increase of 3%-5%, which seems to be their formula.

This is in 2 major businesses, both financial services. Great West Life (GWO-T) and IGM Group, so it is big in life insurance as well as fund management. Great West made an acquisition last year in Ireland giving it Irish and European exposure that will benefit from rising interest rates. A dividend raise is long overdue. Yield of 3.984%.

For financials in general, seasonal strength is in the first half of the year, but not particularly strong for the back half. This one has been doing quite well during its off-season. The chart shows the 20 day is moving higher, a positive short-term trend. 50 day is curling higher, implying a renewed positive intermediate term trend. Technically, it is approaching resistance at $35.77. Pulling back today and wouldn’t be surprised to see some consolidation.

Stock vs. Stock. MFC-T vs PWR-T. He likes both and holds neither. His preference is MFC-T at this point.

Their biggest holding in Europe is a European bank, which had a part stumble recently. Also, have Great West Life (GWO-T). He would not be tempted to buy in at this level. If you can get it in the low $30’s, you would be getting a good deal. Thinks earnings are going to be in the neighbourhood of $3 this year, and maybe growing to $3.30 next year. ROE is around 14%. Trading at Fair Value.

Power Financial (PWF-T) versus Power Corp. (POW-T)? Power Corp. is a holding company, so it is always going to trade at a slight discount. If you really want upside, you should just own the underlying assets. Conglomerates tend to trade at a discount because people are not going to give you full value for all the assets you own. Owning either of these will do well for you.

Has been disappointing. Control position in GWL-T and Putnam Investments in the US and a controlling interest in IGM. Acquired Irish life earlier this year, but investors have not been that excited about it. Can’t explain why it is underperforming. They are long overdue to raise the dividend.

(Market Call Minute.) Cheap. Has set back to good technical support at about $31.50. Lots of nice potential, and it has yield.

You are buying into a mix of businesses, held back by exposure to a French acquisition. Over a 4% yield here. If he owned it he would hold it here because it has more upside than downside.

Thinks this is getting tired. Not too fussy about this year’s showing on the chart. It is rolling over versus its peers. Probably a weaker component of the financials and he would probably avoid it. 4.25% dividend.

(Top Pick Jun 12/13, Up 16.21%) He is still buying it and likes the yield, payout ratio, exposure to rising interest rates through insurance. A core slow and steady grower.

(PWF.PR.D-T) 5.5% Series D Preferred. This is a perpetual issue, so there is no rate reset. Effectively with this, you are getting a huge pick-up over what you would get in the long-term bond market right now.