Power Financial Corp (PWF.TO)

They own 67% of Great West Life (GWO-T) and a big chunk of Investors Group along with a European joint venture group that has various industrial names. Really a net asset value story. Usually you buy this when the discount is quite wide. Historically it trades at a 10% discount of NAV, and is currently around 15%. Provides a yield in excess of 4%. She prefers the Canadian banks.

Canadian financial services have been under pressure. Thinks they are taking a cue from US financials. In the last 2 months, we have seen big declines in money centered banks and insurance companies, especially in the US. This is one of the quality ones, and he would be patient. He has a 22.5% upside to his model price of $40.70.

He has been somewhat concerned about this company. Has been dropping since last December. Owned it because it had a pretty good dividend, close to 4%. Great West Life (GWO-T) is one of their big investments as well as Investors Group and various other companies. He is not very enthused about mutual funds, with ETFs out there competing with them. He expects that he will probably sell his holdings.

(A Top Pick March 15/13. Up 1.36%.) Preferred S series 4.8%. This is a perpetual and pays a $1.40 in dividends. Has been a little bit weak because of their longer date, but still represents great value. Still likes it.

This is fully recovered. It is hard for them to grow their earnings from here. He would hold it for the dividend.

A name he would be adding to. Its businesses are in Great West Life (GWO-T), Investors Group. Both areas are very much in the right place, wealth management and insurance with interest rates likely to rise slowly and steadily over time. Just came out with earnings which were okay. The bigger opportunity is to buy the parent, Power Corp (POW-T) instead. Has a slightly lower dividend, but is trading at a very big discount to its historical spread. He would buy either one of these on any sort of a pull back.

Holds Great West Life, Investors Group, as well as some European exposure. Had a little bit softer results in their 4^th quarter, largely due to one segment of their business. Has not had much in the way of dividend increases in the last little while, which is somewhat disappointing. He would like to see a little bit more positive catalyst on the growth side for earnings to be able to materialize to validate the closing of the discount to NAV.

(A Top Pick Jan 21/13. Up 29.84%.) This could almost have been a Top Pick today. This trend of wealth management, insurance is still only in the 3^rd or 4^th inning. Still trading slightly below its five-year average and doesn’t see why it couldn’t trade way above the five-year average. Still a Buy.

(Market Call Minute.) Not crazy about the stock. Has a lot of life company exposure, which is still a little premature.

Has .3% higher dividend than power corp. Looks as if it is slowly breaking out and ratcheting higher. Not exciting but it will perform.

Life insurance (Great West Life), IGM group (Mutual funds), and major investments in European companies. Been a while since the last dividend increase and he expects one soon.

Likes it and thinks there will be consistent earnings and dividend growth. Conservative long-term play.

This is kind of a bucket of exposure, so you get your life insurance (Great West Life (GWO-T)) and an asset management arm (Investors Group). There tends to be a discount because it’s a conglomerate. She prefers individual plays such as CI Financial(CIX-T) and Manulife (MFC-T). Gives you the same macro reasons in the same space but a pure play has more upside.

You get a discount to Great West Life. They have not raised their dividend for the last 5 years. There was a breakout to the upside over the last 6 months.

Their main components are Investors Group and Great West Life and both are clearly enjoying this booming market, both from a personal wealth accumulation and insurance sales. Wouldn’t call it cheap because both underlying stocks have done fairly well, but if you feel comfortable with the economy continuing to grow and that Europe will come back quite a bit, there is probably more upside for them.