CI Financial Corp

CIX-T

Analysis and Opinions about CIX-T

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Opinion
Expert
PAST TOP PICK
PAST TOP PICK
May 5, 2020
(A Top Pick May 02/19, Down 25%) He got stopped out. It was a value play. It was cheap at $15. He doesn't know how retailer investors will respond to this current uncertainty. The mutual fund business was facing headwinds before the pandemic. He won't buy back his shares.
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(A Top Pick May 02/19, Down 25%) He got stopped out. It was a value play. It was cheap at $15. He doesn't know how retailer investors will respond to this current uncertainty. The mutual fund business was facing headwinds before the pandemic. He won't buy back his shares.
DON'T BUY
DON'T BUY
January 27, 2020
It's cheap and a pretty well run business, but the mutual fund business is not as good as it was 10-15 years ago. Fees in the financial services sector are under pressure. The long term challenges in the industry would keep him away from the stock.
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CI Financial Corp (CIX-T)
January 27, 2020
It's cheap and a pretty well run business, but the mutual fund business is not as good as it was 10-15 years ago. Fees in the financial services sector are under pressure. The long term challenges in the industry would keep him away from the stock.
BUY WEAKNESS
BUY WEAKNESS
August 26, 2019
A big Canadian mutual fund company. A go-go stock for many years and a fast-grower, but is now under pressure like the sector. Still produces a lot of fresh cash flow. It's in trading range of $18-23. Pays a nice dividend.
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A big Canadian mutual fund company. A go-go stock for many years and a fast-grower, but is now under pressure like the sector. Still produces a lot of fresh cash flow. It's in trading range of $18-23. Pays a nice dividend.
WEAK BUY
WEAK BUY
May 10, 2019
Optimal period is between October and February. Positive in 15 of last 20 periods. Charts show a downtrend. We have a breakout. Trading above moving averages, has momentum. New trend should carry it higher. Technicals do look supportive.
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Optimal period is between October and February. Positive in 15 of last 20 periods. Charts show a downtrend. We have a breakout. Trading above moving averages, has momentum. New trend should carry it higher. Technicals do look supportive.
TOP PICK
TOP PICK
May 2, 2019
They are facing some challenges as money moves from active to passive management. They are very profitable and have lots of free cash flow. They buy back shares and have a decent dividend. (Analysts’ price target is $21.33)
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They are facing some challenges as money moves from active to passive management. They are very profitable and have lots of free cash flow. They buy back shares and have a decent dividend. (Analysts’ price target is $21.33)
DON'T BUY
DON'T BUY
February 20, 2019
The sector's been difficult as a whole. Money flowing into ETFs, which puts pressure on fees and margins. No growth in the sector. She wouldn't pick any companies in the sector.
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CI Financial Corp (CIX-T)
February 20, 2019
The sector's been difficult as a whole. Money flowing into ETFs, which puts pressure on fees and margins. No growth in the sector. She wouldn't pick any companies in the sector.
WATCH
WATCH
January 15, 2019
He's watching it closely. Disclosure: A colleague of his sits on their board. A good business. CI can transition from mutual funds into private wealth management. They have a good cost structure. At $17, they're buying back lots of stock, but using debt to do so. They suffered a huge correction last year. But he's closely watching this as a serious buy. 4.1% dividend.
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CI Financial Corp (CIX-T)
January 15, 2019
He's watching it closely. Disclosure: A colleague of his sits on their board. A good business. CI can transition from mutual funds into private wealth management. They have a good cost structure. At $17, they're buying back lots of stock, but using debt to do so. They suffered a huge correction last year. But he's closely watching this as a serious buy. 4.1% dividend.
PAST TOP PICK
PAST TOP PICK
November 28, 2018
(A Top Pick Aug 22/17, Down 26%) Pared back his holding. High 42% ROE, but the market doesn't see it as a growth stock; their Century acquisition was over-expensive. It's good that they're buying back shares. It's very cheap now, but has terrible price momentum. He needs to see a bottom with this stock.
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CI Financial Corp (CIX-T)
November 28, 2018
(A Top Pick Aug 22/17, Down 26%) Pared back his holding. High 42% ROE, but the market doesn't see it as a growth stock; their Century acquisition was over-expensive. It's good that they're buying back shares. It's very cheap now, but has terrible price momentum. He needs to see a bottom with this stock.
SELL
SELL
October 18, 2018

Sold it around $21. Customers are moving from Mutual Funds to ETFs. This is affecting them. The fact that the Canadian Market hasn’t done so well it also affected them as they are not as global in nature. (Analysts’ price target is $24.88)

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CI Financial Corp (CIX-T)
October 18, 2018

Sold it around $21. Customers are moving from Mutual Funds to ETFs. This is affecting them. The fact that the Canadian Market hasn’t done so well it also affected them as they are not as global in nature. (Analysts’ price target is $24.88)

HOLD
HOLD
September 28, 2018

Cut dividend and guidance as to when elevated outflows will stop. Payout ratio is fine at 30%. Buying back stock instead. He’s modelling that assets under management will stabilize back to 2017 levels. At 8.1x 2019 earnings, really cheap. Some performance issues. Worth holding if you own it. Write a put on it.

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CI Financial Corp (CIX-T)
September 28, 2018

Cut dividend and guidance as to when elevated outflows will stop. Payout ratio is fine at 30%. Buying back stock instead. He’s modelling that assets under management will stabilize back to 2017 levels. At 8.1x 2019 earnings, really cheap. Some performance issues. Worth holding if you own it. Write a put on it.

DON'T BUY
DON'T BUY
September 13, 2018

It's really struggled this year. A problem for all asset managers is an ongoing price war led by the banks. As a result, CI has had to cut fees, but also halved their dividend (last month). Also, their key funds are underperforming. The organic growth is gone. This is a value trap. Avoid.

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CI Financial Corp (CIX-T)
September 13, 2018

It's really struggled this year. A problem for all asset managers is an ongoing price war led by the banks. As a result, CI has had to cut fees, but also halved their dividend (last month). Also, their key funds are underperforming. The organic growth is gone. This is a value trap. Avoid.

HOLD
HOLD
September 10, 2018

It is a well run company that has done a phenomenal job. They are facing a lot of pressure in terms of fees and how to grow when they are already so big. They are in a bit of a no-man's land. They cut their dividend to buy back shares. It sends the wrong message to some investors.

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CI Financial Corp (CIX-T)
September 10, 2018

It is a well run company that has done a phenomenal job. They are facing a lot of pressure in terms of fees and how to grow when they are already so big. They are in a bit of a no-man's land. They cut their dividend to buy back shares. It sends the wrong message to some investors.

HOLD
HOLD
July 26, 2018

Cheap stock. 6% dividend yield with a 55% payout ratio. They had poor performance. Management if guiding at more outflows. Regulatory concerns have proved to turn out better than many people thought. It is not going to do the heavy lifting for your portfolio but getting your dividend you will be OK.

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Cheap stock. 6% dividend yield with a 55% payout ratio. They had poor performance. Management if guiding at more outflows. Regulatory concerns have proved to turn out better than many people thought. It is not going to do the heavy lifting for your portfolio but getting your dividend you will be OK.

HOLD
HOLD
July 23, 2018

It is a mutual fund company, one of the most successful. It suffered recently as have others with concerns of pressure from ETFs and regulation changes. The dividend is probably stable and safe.

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It is a mutual fund company, one of the most successful. It suffered recently as have others with concerns of pressure from ETFs and regulation changes. The dividend is probably stable and safe.

DON'T BUY
DON'T BUY
July 18, 2018

He owns this personally. It's a portfolio manager, not insurance. They've stumbled a bit after buying some new assets. The Century deal is probably clearing. The yield is probably safe. But it's disappointed. It was $38 five years ago and been on a tobboggan run ever since.

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He owns this personally. It's a portfolio manager, not insurance. They've stumbled a bit after buying some new assets. The Century deal is probably clearing. The yield is probably safe. But it's disappointed. It was $38 five years ago and been on a tobboggan run ever since.

HOLD
HOLD
July 6, 2018

This is another high-quality dividend-paying stock that has been hurt this year. They’ve had some net redemptions, but the selloff is overdone relative to that. From a valuation perspective, this is in the top 10% and it is a very stable stock. This is a great consolidator. However, active management has been declining relative to passive investment. There are no debt problems. He is happy to own it here but the negative price momentum stops him from recommending it for new money.

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This is another high-quality dividend-paying stock that has been hurt this year. They’ve had some net redemptions, but the selloff is overdone relative to that. From a valuation perspective, this is in the top 10% and it is a very stable stock. This is a great consolidator. However, active management has been declining relative to passive investment. There are no debt problems. He is happy to own it here but the negative price momentum stops him from recommending it for new money.

DON'T BUY
DON'T BUY
June 28, 2018

Great company. They have been the quality act in the funds business. He has a soft spot for them as they were the very first client when he started in business in 1993. ETFs are putting them under pressure. Fees are coming down. It is not a growth business anymore. Their writing is a little bit on the wall for them.

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Great company. They have been the quality act in the funds business. He has a soft spot for them as they were the very first client when he started in business in 1993. ETFs are putting them under pressure. Fees are coming down. It is not a growth business anymore. Their writing is a little bit on the wall for them.

COMMENT
COMMENT
December 19, 2017

They are in a tough industry being in mutual funds and trying to transition out. Saw a big decline from 2015 until 2016 and now we’ve just moved sideways when they should have been moving up. We are in seasonal period and financial companies tends to get strong at this time of the year. From a seasonal perspective, look at April to be getting out if you’re in it. He doesn’t see an exciting opportunity here. If they break above the $30 level that might actually be a good thing. Technically it’s looking OK despite being flat for most of the year.

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CI Financial Corp (CIX-T)
December 19, 2017

They are in a tough industry being in mutual funds and trying to transition out. Saw a big decline from 2015 until 2016 and now we’ve just moved sideways when they should have been moving up. We are in seasonal period and financial companies tends to get strong at this time of the year. From a seasonal perspective, look at April to be getting out if you’re in it. He doesn’t see an exciting opportunity here. If they break above the $30 level that might actually be a good thing. Technically it’s looking OK despite being flat for most of the year.

COMMENT
COMMENT
December 6, 2017

Sell this and buy Shaw Communications (SJR.B-T) or BCE (BCE-T)? He likes all 3. It really comes down to your portfolio and what else you own. These are 3 very different businesses. BCE is the most boring name and is the “Steady Eddie”. You’re getting a dividend of about 4.7%, and the stock is up about 6% this year giving you a 10% return. He would steer you more towards BCE.

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CI Financial Corp (CIX-T)
December 6, 2017

Sell this and buy Shaw Communications (SJR.B-T) or BCE (BCE-T)? He likes all 3. It really comes down to your portfolio and what else you own. These are 3 very different businesses. BCE is the most boring name and is the “Steady Eddie”. You’re getting a dividend of about 4.7%, and the stock is up about 6% this year giving you a 10% return. He would steer you more towards BCE.

PAST TOP PICK
PAST TOP PICK
November 24, 2017

(A Top Pick Sept 15/16. Down 22%.) *Short* He is still Short. The return represents the worst snapshot possible, but as he has held this for a long time, he is still profitable. Wealth management and mutual fund space in general has been a very tough spot. Feels the stock is still expensive.

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CI Financial Corp (CIX-T)
November 24, 2017

(A Top Pick Sept 15/16. Down 22%.) *Short* He is still Short. The return represents the worst snapshot possible, but as he has held this for a long time, he is still profitable. Wealth management and mutual fund space in general has been a very tough spot. Feels the stock is still expensive.

BUY
BUY
September 28, 2017

Just bought Sentry, which looks accretive to him, in the upper single digits. Bought First Asset about a year ago, as well as an Australian asset manager. He is modelling 9% earnings per share growth with about a 3% annual dividend growth. Trades at around 12X, versus its five-year average of 16X. Even though their MER’s are coming down, the margins still are at 42%. 71% payout ratio on its 5%+ dividend.

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CI Financial Corp (CIX-T)
September 28, 2017

Just bought Sentry, which looks accretive to him, in the upper single digits. Bought First Asset about a year ago, as well as an Australian asset manager. He is modelling 9% earnings per share growth with about a 3% annual dividend growth. Trades at around 12X, versus its five-year average of 16X. Even though their MER’s are coming down, the margins still are at 42%. 71% payout ratio on its 5%+ dividend.

DON'T BUY
DON'T BUY
August 28, 2017

Not his favourite space. There is tons of competition from everywhere. They made a recent acquisition and that is a positive. You have to get bigger in the business and then take costs out. Mutual funds have to disclose fees now. It is a tough grind for them. They are doing all the right things, but he does not see a ton of growth.

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Not his favourite space. There is tons of competition from everywhere. They made a recent acquisition and that is a positive. You have to get bigger in the business and then take costs out. Mutual funds have to disclose fees now. It is a tough grind for them. They are doing all the right things, but he does not see a ton of growth.

TOP PICK
TOP PICK
August 23, 2017

There has been a real knock at active management in the industry. These guys are the lowest cost provider of actively managed mutual funds. They have a 28% return on equity. This is quite a stable business. (Analysts’ target: $30.00).

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There has been a real knock at active management in the industry. These guys are the lowest cost provider of actively managed mutual funds. They have a 28% return on equity. This is quite a stable business. (Analysts’ target: $30.00).

COMMENT
COMMENT
August 1, 2017

Dividend yield of a little over 5%, and can grow this over the coming years. The entire mutual fund industry is struggling with commissions and the reduction of commissions as interest rates have come down. The industry has been hammered for the last 4-5 years with this problem, so their growth with the market hasn’t been as high. Feels it is largely priced in and the stock can gradually recover.

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Dividend yield of a little over 5%, and can grow this over the coming years. The entire mutual fund industry is struggling with commissions and the reduction of commissions as interest rates have come down. The industry has been hammered for the last 4-5 years with this problem, so their growth with the market hasn’t been as high. Feels it is largely priced in and the stock can gradually recover.

PAST TOP PICK
PAST TOP PICK
July 5, 2017

(A Top Pick July 5/16. Down 9.98%.) *Short* He’s been Short this for a couple of years and it has been good to him. The stock has rallied recently. A very expensive stock and margins are shrinking because of the management fees they are able to charge. Feels this is a long-term structural Short.

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(A Top Pick July 5/16. Down 9.98%.) *Short* He’s been Short this for a couple of years and it has been good to him. The stock has rallied recently. A very expensive stock and margins are shrinking because of the management fees they are able to charge. Feels this is a long-term structural Short.

TOP PICK
TOP PICK
July 5, 2017

*Short* The competitive pressure has gotten worse. The stock price has risen, but that has been with the broader market in general, not because the business has improved. They still have very weak underlying net sales. Dividend yield of 5.1%. (Analysts’ price target is $29.50.)

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*Short* The competitive pressure has gotten worse. The stock price has risen, but that has been with the broader market in general, not because the business has improved. They still have very weak underlying net sales. Dividend yield of 5.1%. (Analysts’ price target is $29.50.)

HOLD
HOLD
March 24, 2017

They had 2.4 Billion in outflows due to industry headwinds. They have a 65% payout ratio so you are going to get that dividend. He forecasts 10% share growth over the next couple of years. It is cheap, 12 times, vs. its 7 year average. You will get a better exit later on. He has been writing puts to pick it up. Don’t have it as a big position or to hold for 50 years. You should exit if it reaches $32 over the next couple of years.

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They had 2.4 Billion in outflows due to industry headwinds. They have a 65% payout ratio so you are going to get that dividend. He forecasts 10% share growth over the next couple of years. It is cheap, 12 times, vs. its 7 year average. You will get a better exit later on. He has been writing puts to pick it up. Don’t have it as a big position or to hold for 50 years. You should exit if it reaches $32 over the next couple of years.

PAST TOP PICK
PAST TOP PICK
March 14, 2017

(A Top Pick July 5/16. Down 5%.) *Short* Still one of his largest short positions.

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(A Top Pick July 5/16. Down 5%.) *Short* Still one of his largest short positions.

PAST TOP PICK
PAST TOP PICK
January 9, 2017

*Short* (Top Pick Nov 9/16, Up 13.10%) He has been short. He is just leaving it on. The stock is up a reasonable amount but an insider is selling. It is a very expensive stock in a dying industry. They are seeing net outflows.

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*Short* (Top Pick Nov 9/16, Up 13.10%) He has been short. He is just leaving it on. The stock is up a reasonable amount but an insider is selling. It is a very expensive stock in a dying industry. They are seeing net outflows.

TOP PICK
TOP PICK
January 9, 2017

*Short*, stay short. The industry is in secular decline. (Analysts’ Target: $28.83).

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*Short*, stay short. The industry is in secular decline. (Analysts’ Target: $28.83).

HOLD
HOLD
December 8, 2016

There are always take over rumours on this. It is the biggest independent fund company out there. He sees that as being less likely these days as most Canadian banks have their fund presence already. This is one of the more efficient operators, concerning expenses and paying good dividends, so it is a good place to be. However, they are facing challenges with regulations on fees.

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CI Financial Corp (CIX-T)
December 8, 2016

There are always take over rumours on this. It is the biggest independent fund company out there. He sees that as being less likely these days as most Canadian banks have their fund presence already. This is one of the more efficient operators, concerning expenses and paying good dividends, so it is a good place to be. However, they are facing challenges with regulations on fees.

TOP PICK
TOP PICK
November 9, 2016

*Short* He recently added to his short position. It was the first real pop in the stock since he started shorting it. The earnings were particularly bad and the firm sees net outflows from their funds. CRM2 is forcing brokers to disclose what they are paid by mutual fund companies. He thinks it is a secular bear story. There is somewhat of a risk that they get bought out.

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CI Financial Corp (CIX-T)
November 9, 2016

*Short* He recently added to his short position. It was the first real pop in the stock since he started shorting it. The earnings were particularly bad and the firm sees net outflows from their funds. CRM2 is forcing brokers to disclose what they are paid by mutual fund companies. He thinks it is a secular bear story. There is somewhat of a risk that they get bought out.

PAST TOP PICK
PAST TOP PICK
November 9, 2016

*Short* (Top Pick Sept 15/16, Up 2.14%) He is keeping it on as he sees it going into the teens. There is enormous competitive and regulatory pressure.

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CI Financial Corp (CIX-T)
November 9, 2016

*Short* (Top Pick Sept 15/16, Up 2.14%) He is keeping it on as he sees it going into the teens. There is enormous competitive and regulatory pressure.

HOLD
HOLD
November 8, 2016

His opinion on mutual funds in general is to Hold for now and maybe Buy later on. The mutual fund industry is about to go through a big problem with CRM2, where clients are about to find out the egregious amount they pay in MER’s to own the funds. That could cause some disruption for the industry. Dividend yield of 5.5%.

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CI Financial Corp (CIX-T)
November 8, 2016

His opinion on mutual funds in general is to Hold for now and maybe Buy later on. The mutual fund industry is about to go through a big problem with CRM2, where clients are about to find out the egregious amount they pay in MER’s to own the funds. That could cause some disruption for the industry. Dividend yield of 5.5%.

COMMENT
COMMENT
November 4, 2016

Just reported a significant outflow over the last quarter, about $1.5 billion of assets, and are projecting more to come in the next quarter. It’s primarily institutional assets, so it’s pretty low margin business. All these companies are under pressure and prices are being pushed down, so margins are likely to come down. The only way they can deal with that is through cost control. He is a little cautious about the whole industry.

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CI Financial Corp (CIX-T)
November 4, 2016

Just reported a significant outflow over the last quarter, about $1.5 billion of assets, and are projecting more to come in the next quarter. It’s primarily institutional assets, so it’s pretty low margin business. All these companies are under pressure and prices are being pushed down, so margins are likely to come down. The only way they can deal with that is through cost control. He is a little cautious about the whole industry.

COMMENT
COMMENT
September 23, 2016

Have had some weak mandates over the last 12-18 months, and some sizable institutional outflows. There are a lot of mutual fund headwinds, but thinks these are more than captured in the valuations. Trading around 13X versus its 18X five-year average. His analysts model 80% growth in 2017 over 2016. There is $1 billion of institutional commitment that could come on over the next two quarters. They have a buy back which helps them. Good 5.5% very well covered dividend yield. Cheap enough that you could write a Put and get paid premiums. This is good here for a nice little trade.

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CI Financial Corp (CIX-T)
September 23, 2016