Canaccord Financial Inc

CF-T

TSE:CF

5.31
0.04 (0.75%)
Canaccord Genuity Group Inc. is a global, full-service investment banking and financial services company that specializes in wealth management and brokerage in capital markets. It is the largest independent investment dealer in Canada.
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Analysis and Opinions about CF-T

Signal
Opinion
Expert
COMMENT
COMMENT
March 14, 2017

Will this benefit from an interest rate hike? The short answer is yes. Brokers do very well in a rising rate environment, or in an environment where there is a yield curve of any sort, because they can actually make money on cash balances that sit on their books. This has a reasonable US presence. The one issue he would caution you on, is that they have a very large UK business.

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Will this benefit from an interest rate hike? The short answer is yes. Brokers do very well in a rising rate environment, or in an environment where there is a yield curve of any sort, because they can actually make money on cash balances that sit on their books. This has a reasonable US presence. The one issue he would caution you on, is that they have a very large UK business.

COMMENT
COMMENT
March 8, 2017

The 5-year chart shows a big overhead supply in 2014 into 2015. This is building a base now, and needs to break above $5.70 before it is out of the woods. The jury is still out on this one. You want to see a breakout of $5.70, or at least a bigger base.

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The 5-year chart shows a big overhead supply in 2014 into 2015. This is building a base now, and needs to break above $5.70 before it is out of the woods. The jury is still out on this one. You want to see a breakout of $5.70, or at least a bigger base.

SELL
SELL
September 15, 2016

He has a short position in this one. They have some legacy issues. Independent brokers in Canada are not a particularly good place to be.

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He has a short position in this one. They have some legacy issues. Independent brokers in Canada are not a particularly good place to be.

COMMENT
COMMENT
June 27, 2016

One of Canada’s 2 publicly traded brokerage firms. Well diversified with retail, institutional, investment banking and advising business. It has gone through a big restructuring in the last few years. The brokerage industry globally is facing a lot of challenges. It isn’t as profitable as it once was. This one has been very fortunate in being diversified across different industries, but do have a substantial amount of their assets in the UK, and are directly impacted by what has happened with BREXIT. That will impact their profitability and their asset base. He likes this name and it is extremely cheap. Trades at a significant discount to its BV.

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One of Canada’s 2 publicly traded brokerage firms. Well diversified with retail, institutional, investment banking and advising business. It has gone through a big restructuring in the last few years. The brokerage industry globally is facing a lot of challenges. It isn’t as profitable as it once was. This one has been very fortunate in being diversified across different industries, but do have a substantial amount of their assets in the UK, and are directly impacted by what has happened with BREXIT. That will impact their profitability and their asset base. He likes this name and it is extremely cheap. Trades at a significant discount to its BV.

DON'T BUY
DON'T BUY
May 19, 2016

The whole Canadian independent brokerage sector is under extreme pressure. They now got rid of a lot of acquisitions. Unless the resource sector comes back, they are faced with headaches.

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The whole Canadian independent brokerage sector is under extreme pressure. They now got rid of a lot of acquisitions. Unless the resource sector comes back, they are faced with headaches.

WATCH
WATCH
October 30, 2015

A very volatile stock and trades a lot with commodity pricing. They also have the retail franchise which has about $9 billion in assets, but doesn’t seem to generate too much cash. This is going to move a lot with the S&P 500 and the TSX. It is also going to move along with the sub indices of energy and materials. Soon as you start seeing that turn around, that is when you want to start making an investment.

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A very volatile stock and trades a lot with commodity pricing. They also have the retail franchise which has about $9 billion in assets, but doesn’t seem to generate too much cash. This is going to move a lot with the S&P 500 and the TSX. It is also going to move along with the sub indices of energy and materials. Soon as you start seeing that turn around, that is when you want to start making an investment.

DON'T BUY
DON'T BUY
July 15, 2015

Generally speaking the Canadian capital markets are undergoing a very difficult period of time and have been for a while. This is in a very challenged environment and there is not much of a growth outlook. Expects there will be more mergers and consolidations, and it is going to be awhile. If he were going to play a Canadian non-bank financial, it would be something like an Investors Group.

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Generally speaking the Canadian capital markets are undergoing a very difficult period of time and have been for a while. This is in a very challenged environment and there is not much of a growth outlook. Expects there will be more mergers and consolidations, and it is going to be awhile. If he were going to play a Canadian non-bank financial, it would be something like an Investors Group.

COMMENT
COMMENT
June 17, 2015

Held this about 6 months ago before the market turned down. From the lows, it has had a pretty nice jump off the bottom. They do make money, but it is a very cyclical company. They generate returns based on the energy market, materials market such as gold, and how many deals they do. Also, have a lot of investment advisors. He likes their overall business, but you can’t hold this for the long-term because it is always going to have its ups and downs. Pays a reasonable dividend. If there is a potential of a big move down in the market, this is not a name you want to be in.

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Held this about 6 months ago before the market turned down. From the lows, it has had a pretty nice jump off the bottom. They do make money, but it is a very cyclical company. They generate returns based on the energy market, materials market such as gold, and how many deals they do. Also, have a lot of investment advisors. He likes their overall business, but you can’t hold this for the long-term because it is always going to have its ups and downs. Pays a reasonable dividend. If there is a potential of a big move down in the market, this is not a name you want to be in.

COMMENT
COMMENT
April 15, 2015

A very, very cheap company and trading almost below its BV and almost below its cash value as well. They are very highly tuned to the capital market, particularly the Junior markets in terms of technology and resources. He really doesn’t know why investors are not appreciating the stock. It has high leverage to capital markets, a great balance sheet, and great earnings potential if things go well, and as these finances come back, their leverage on investment banking fees and advisory work is very, very big. Good company.

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A very, very cheap company and trading almost below its BV and almost below its cash value as well. They are very highly tuned to the capital market, particularly the Junior markets in terms of technology and resources. He really doesn’t know why investors are not appreciating the stock. It has high leverage to capital markets, a great balance sheet, and great earnings potential if things go well, and as these finances come back, their leverage on investment banking fees and advisory work is very, very big. Good company.

COMMENT
COMMENT
February 5, 2015

Had a Short on this and just covered it in the last couple of days. His issue is that the ROE is really, really modest. They have a capital base of about $1.1 billion of equity and are on target to make $35 million. That is a 3.5% return. When you are doing this kind of return on that kind of capital, you won’t trade at BV. The rough rule of thumb in Canada is that if you have an 8% ROE, you will trade at Book, 16% ROE you will trade at 2X Book, etc. This company’s average is around 4%, so that should trade at around .5X Book, and their average is about .6X Book right now. They have to become much more capital efficient. If there is a little bit of a rally in this company and if you own, he would recommend that you Sell.

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Had a Short on this and just covered it in the last couple of days. His issue is that the ROE is really, really modest. They have a capital base of about $1.1 billion of equity and are on target to make $35 million. That is a 3.5% return. When you are doing this kind of return on that kind of capital, you won’t trade at BV. The rough rule of thumb in Canada is that if you have an 8% ROE, you will trade at Book, 16% ROE you will trade at 2X Book, etc. This company’s average is around 4%, so that should trade at around .5X Book, and their average is about .6X Book right now. They have to become much more capital efficient. If there is a little bit of a rally in this company and if you own, he would recommend that you Sell.

PAST TOP PICK
PAST TOP PICK
February 4, 2015

(Top Pick Feb 4/14, Up 1.33%) They have tons of cash and are trading below book value. It is a very attractive company from a valuation perspective. You need the growth in mergers and financings, which we have seen in the last week. Their costs are variable and you have to watch them.

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(Top Pick Feb 4/14, Up 1.33%) They have tons of cash and are trading below book value. It is a very attractive company from a valuation perspective. You need the growth in mergers and financings, which we have seen in the last week. Their costs are variable and you have to watch them.

PAST TOP PICK
PAST TOP PICK
January 26, 2015

(Top Pick Jan 10/14, Down 6.92%) They are geared to a commodity market. They performed well the first half of the year. He took half his position off since. Continue to hold it or buy more.

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(Top Pick Jan 10/14, Down 6.92%) They are geared to a commodity market. They performed well the first half of the year. He took half his position off since. Continue to hold it or buy more.

DON'T BUY
DON'T BUY
January 22, 2015

Largest free broker left in Canada. Times are not good for independent brokers because of problems in the oil sector where it is hard to do new issues. The yield is okay. You are better in a bank or insurance company, however.

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Largest free broker left in Canada. Times are not good for independent brokers because of problems in the oil sector where it is hard to do new issues. The yield is okay. You are better in a bank or insurance company, however.

BUY
BUY
December 16, 2014

This stock is highly correlated to the stock market. Trading below book value right now. Now is probably a pretty good time to buy. It is very dependent on the market.

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This stock is highly correlated to the stock market. Trading below book value right now. Now is probably a pretty good time to buy. It is very dependent on the market.

PAST TOP PICK
PAST TOP PICK
December 9, 2014

(A Top Pick Jan 10/14. Up 5.97%.) Had anticipated better times and a better year, which he got. Bought more in January, but sold about half his holdings in the $12 area. Today it is trading at about 8X BV, which is when you buy brokers, not when you sell them. It is now becoming very interesting. Close to a 4% dividend yield and management is buying back stock. This would be on his radar screen to pick away at.

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(A Top Pick Jan 10/14. Up 5.97%.) Had anticipated better times and a better year, which he got. Bought more in January, but sold about half his holdings in the $12 area. Today it is trading at about 8X BV, which is when you buy brokers, not when you sell them. It is now becoming very interesting. Close to a 4% dividend yield and management is buying back stock. This would be on his radar screen to pick away at.

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