Peter HodsonRockwater Capital Bought by CI Finacial (CIX-UN-T)RCC.TOWEAK BUYMay 12, 2003
Like the management team and the balance sheet. Doing a good job of consolidating the financial services sector. A long term story. Its a decent play down in the $0.70/0.80's. Could go to $1. A bit pricey now.
Being acquired by C I Financial (CIX-T). On the choice of cash or C I shares, he would opt for the shares. There is a chance that someone else will come along and up the bid.
Likes the brokerage business. Doesn't use his models on this one. Has a little bit in his RRSP. Have been a little bit of a disappointment getting their act together. Didn't use his model and lost money. More of an emotional pick.
Doing a consolidation roll up strategy in the investment management business. Good team and he likes the space, but every time they do an acquisition, they issue stock and there's always stock up for sale. Prefers GMP Capital.
Thinks they are going to have some challenges because of consolidations in larger firms.Small brokerages, joining them have very small books.Not cheap.