Guardian Capital Group

GCG.A-T

TSE:GCG.A

25.00
0.02 (0.08%)
Guardian Capital Group, founded in 1962, operates several fully owned subsidiaries whose operations are to provide investment management services, financial advisory services, retail distribution of ...
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Analysis and Opinions about GCG.A-T

Signal
Opinion
Expert
TOP PICK
TOP PICK
November 25, 2019
You get the asset manager for free, because of the underlying value in all the BMO shares they own. They own $600 million in total assets, plus $200 million in the asset manager who have generated good growth. One fundamental global fund has shot up from $1-billion to $3-billion in assets. They hold alot of Canadian assets, which may come back into favour and drive up GCG's fees. Good momentum. (Analysts’ price target is $32.50)
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You get the asset manager for free, because of the underlying value in all the BMO shares they own. They own $600 million in total assets, plus $200 million in the asset manager who have generated good growth. One fundamental global fund has shot up from $1-billion to $3-billion in assets. They hold alot of Canadian assets, which may come back into favour and drive up GCG's fees. Good momentum. (Analysts’ price target is $32.50)
PAST TOP PICK
PAST TOP PICK
January 28, 2019
(A Top Pick Jan 29/18, Down 13%) It has held up well considering asset managers are hitting 52 week lows. It is worth about $34 so trades at a 33% discount. There is no debt. They buy back shares on a regular basis. Buy it on the dips.
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(A Top Pick Jan 29/18, Down 13%) It has held up well considering asset managers are hitting 52 week lows. It is worth about $34 so trades at a 33% discount. There is no debt. They buy back shares on a regular basis. Buy it on the dips.
TOP PICK
TOP PICK
January 29, 2018

Half the market cap is BMO-T shares. It is a cheap way of playing BMO-T and you get their money management business at a big discount.

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Half the market cap is BMO-T shares. It is a cheap way of playing BMO-T and you get their money management business at a big discount.

TOP PICK
TOP PICK
October 4, 2016

*Long* (Pairs trade with a Short on BMO-T). In 2001, they sold their mutual fund business to BMO in exchange for 5 million BMO shares. They sat on the 5 million for a while, but have started selling them and are down to 4.2 million. However, if you take the value of their BMO shares plus some of their other investments, it comes to $17.96 a share, and is trading at roughly $22.50, so there is not very much value in that stub. Because of this, you can pay a very healthy premium for the current share price if somebody came in. There really is a scarcity value of independent asset managers in Canada, so he expects that one day, if not BMO, that someone else will come in and take this company out.

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*Long* (Pairs trade with a Short on BMO-T). In 2001, they sold their mutual fund business to BMO in exchange for 5 million BMO shares. They sat on the 5 million for a while, but have started selling them and are down to 4.2 million. However, if you take the value of their BMO shares plus some of their other investments, it comes to $17.96 a share, and is trading at roughly $22.50, so there is not very much value in that stub. Because of this, you can pay a very healthy premium for the current share price if somebody came in. There really is a scarcity value of independent asset managers in Canada, so he expects that one day, if not BMO, that someone else will come in and take this company out.

TOP PICK
TOP PICK
July 20, 2016

A deep value company, where it is an asset manager. Market cap of about $650 million-$675 million. They own Bank of Montréal (BMO-T) shares that are worth about $360 million, as well as other securities that are worth about $230 million. You are almost getting the asset management company for free. Extremely cheap. They continue to buy back shares. Dividend yield of 1.58%.

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A deep value company, where it is an asset manager. Market cap of about $650 million-$675 million. They own Bank of Montréal (BMO-T) shares that are worth about $360 million, as well as other securities that are worth about $230 million. You are almost getting the asset management company for free. Extremely cheap. They continue to buy back shares. Dividend yield of 1.58%.

PAST TOP PICK
PAST TOP PICK
February 8, 2016

(A Top Pick Feb 10/15. Up 2.22%.) *A Long Paired with BMO Short*. The reason for this trade was that Guardian has sold its mutual fund business to BMO in exchange for $5 million of BMO shares.

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(A Top Pick Feb 10/15. Up 2.22%.) *A Long Paired with BMO Short*. The reason for this trade was that Guardian has sold its mutual fund business to BMO in exchange for $5 million of BMO shares.

COMMENT
COMMENT
November 24, 2015

He is Long this stock and Short the Bank of Montréal (BMO-T). In 2001, Guardian sold its mutual fund business to BMO in exchange for 5 million BMO shares. It has been sitting on those for the last 14 years. He put this trade on in 2009 when Guardian was trading at a 25% discount to its value in the BMO shares, so historically it was trading at about a 25% premium. Regardless of what the market conditions did, he saw a 50% upside if it returned to normal levels of trading, relative to the BMO holdings. Essentially he has a 3.5% position in this with a 3%-3.5% Short position with BMO, so it is relatively market neutral. The Guardian is less liquid than the BMO, so if he decides he wants to vary his not market exposure, it is a lot easier to trade BMO. He will vary this trade to a variety of conditions.

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He is Long this stock and Short the Bank of Montréal (BMO-T). In 2001, Guardian sold its mutual fund business to BMO in exchange for 5 million BMO shares. It has been sitting on those for the last 14 years. He put this trade on in 2009 when Guardian was trading at a 25% discount to its value in the BMO shares, so historically it was trading at about a 25% premium. Regardless of what the market conditions did, he saw a 50% upside if it returned to normal levels of trading, relative to the BMO holdings. Essentially he has a 3.5% position in this with a 3%-3.5% Short position with BMO, so it is relatively market neutral. The Guardian is less liquid than the BMO, so if he decides he wants to vary his not market exposure, it is a lot easier to trade BMO. He will vary this trade to a variety of conditions.

PAST TOP PICK
PAST TOP PICK
August 26, 2015

(A Top Pick Aug 21/14. Down 5.45%.) With the markets behaving the way they are, a company like this is somewhat correlated, because they do manage assets. Have been executing beautifully. They are up in terms of assets under management and their EBITDA year-over-year by double digits. Made some good accretive acquisitions. Buying back stock very aggressively. On valuation, he attributes about $9.00 to the money management business and $13 to their portfolio, which are mainly BMO (BMO-T) shares. They are focusing on growth. At this price it is a great buy.

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(A Top Pick Aug 21/14. Down 5.45%.) With the markets behaving the way they are, a company like this is somewhat correlated, because they do manage assets. Have been executing beautifully. They are up in terms of assets under management and their EBITDA year-over-year by double digits. Made some good accretive acquisitions. Buying back stock very aggressively. On valuation, he attributes about $9.00 to the money management business and $13 to their portfolio, which are mainly BMO (BMO-T) shares. They are focusing on growth. At this price it is a great buy.

BUY
BUY
May 25, 2015

It has historically been quite undervalued. It is a very stable stock. PE is reasonable. It is a bit of a sleepy stock, but ultimately could be a consolidation target or they could spin out their BMO shares and acquire something.

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It has historically been quite undervalued. It is a very stable stock. PE is reasonable. It is a bit of a sleepy stock, but ultimately could be a consolidation target or they could spin out their BMO shares and acquire something.

PAST TOP PICK
PAST TOP PICK
April 22, 2015

(A Top Pick April 16/14. Up 9.64%.) Long and Short Bank of Montréal (BMO-T). In 2001, they sold their mutual fund business to Bank of Montréal in exchange for 5 million shares. Have been sitting on these shares since 2001. He looks at the value of those plus some of their other listed investments, and in the last quarter it comes to about 89% of Guardian’s value. For the stub that is left, you are paying next to nothing for it. Thinks this is worth a lot more.

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(A Top Pick April 16/14. Up 9.64%.) Long and Short Bank of Montréal (BMO-T). In 2001, they sold their mutual fund business to Bank of Montréal in exchange for 5 million shares. Have been sitting on these shares since 2001. He looks at the value of those plus some of their other listed investments, and in the last quarter it comes to about 89% of Guardian’s value. For the stub that is left, you are paying next to nothing for it. Thinks this is worth a lot more.

COMMENT
COMMENT
February 17, 2015

An asset managing business that happens to have a very large stake in Bank of Montréal (BOM-T) shares. Not quite a pure play asset management business because of that, but often what investors do is to strip out the value of those shares to find the value of the underlying asset management business. In the past he has Shorted the amount of underlying Bank of Montréal shares to hedge out that exposure. By owning Guardian shares and Shorting BMO, you are left with the stub asset management business. It has been performing well and has been growing. Overall a well-run business. The real upside will come if they sell those shares in order to make acquisitions or expand the asset management business.

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An asset managing business that happens to have a very large stake in Bank of Montréal (BOM-T) shares. Not quite a pure play asset management business because of that, but often what investors do is to strip out the value of those shares to find the value of the underlying asset management business. In the past he has Shorted the amount of underlying Bank of Montréal shares to hedge out that exposure. By owning Guardian shares and Shorting BMO, you are left with the stub asset management business. It has been performing well and has been growing. Overall a well-run business. The real upside will come if they sell those shares in order to make acquisitions or expand the asset management business.

TOP PICK
TOP PICK
February 10, 2015

(A Top Pick April 16/14. Down 0.87%.) Long Guardian Capital (GCG.A-T) and short Bank of Montréal (BMO-T). The whole rationale behind this was that in 2001 this company sold its mutual fund business to Bank of Montréal in exchange for 5 million Bank of Montréal shares. The company sat on these shares until about 18 months ago. They still hold 4.7 million shares. This large investment portfolio is currently worth about $16.75. Their stock price today is $16.95. Essentially you are paying $0.20 for the business. Very good institutional managers, who have a large private wealth network as well. Recently made an acquisition in the UK. Yield of 1.54%. Feels that Bank of Montréal, or one of the other banks, is going to take them out at a very healthy premium.

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(A Top Pick April 16/14. Down 0.87%.) Long Guardian Capital (GCG.A-T) and short Bank of Montréal (BMO-T). The whole rationale behind this was that in 2001 this company sold its mutual fund business to Bank of Montréal in exchange for 5 million Bank of Montréal shares. The company sat on these shares until about 18 months ago. They still hold 4.7 million shares. This large investment portfolio is currently worth about $16.75. Their stock price today is $16.95. Essentially you are paying $0.20 for the business. Very good institutional managers, who have a large private wealth network as well. Recently made an acquisition in the UK. Yield of 1.54%. Feels that Bank of Montréal, or one of the other banks, is going to take them out at a very healthy premium.

BUY
BUY
December 16, 2014

Top Pick in August. One of the cheapest stocks out there, but not that liquid. Well managed business, dirt cheap. Fastest growing asset manager. Hold for the long term.

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Top Pick in August. One of the cheapest stocks out there, but not that liquid. Well managed business, dirt cheap. Fastest growing asset manager. Hold for the long term.

PAST TOP PICK
PAST TOP PICK
November 6, 2014

(Top Pick Nov 05/13, Up 22.23%) The shares they own in BMO-T are a big part of it (over $10 a share). Their own asset management business has been growing recently. They are gradually reducing their stake in BMO-T and using proceeds to reinvest back in their own business. He has a short in BMO to offset any risk in the BMO shares they own.

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(Top Pick Nov 05/13, Up 22.23%) The shares they own in BMO-T are a big part of it (over $10 a share). Their own asset management business has been growing recently. They are gradually reducing their stake in BMO-T and using proceeds to reinvest back in their own business. He has a short in BMO to offset any risk in the BMO shares they own.

TOP PICK
TOP PICK
August 21, 2014

Has tremendous upside. A lot of value. One of the largest publicly traded money managers in Canada. Huge holding of BMO shares worth $16 and company trades just about $17.

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Has tremendous upside. A lot of value. One of the largest publicly traded money managers in Canada. Huge holding of BMO shares worth $16 and company trades just about $17.

Showing 1 to 15 of 22 entries

Guardian Capital Group(GCG.A-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Guardian Capital Group is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Guardian Capital Group(GCG.A-T) Frequently Asked Questions

What is Guardian Capital Group stock symbol?

Guardian Capital Group is a Canadian stock, trading under the symbol GCG.A-T on the Toronto Stock Exchange (GCG-A-CT). It is usually referred to as TSX:GCG.A or GCG.A-T

Is Guardian Capital Group a buy or a sell?

In the last year, there was no coverage of Guardian Capital Group published on Stockchase.

Is Guardian Capital Group a good investment or a top pick?

Guardian Capital Group was recommended as a Top Pick by Peter Imhof on 2019-11-25. Read the latest stock experts ratings for Guardian Capital Group.

Why is Guardian Capital Group stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Guardian Capital Group worth watching?

0 stock analysts on Stockchase covered Guardian Capital Group In the last year. It is a trending stock that is worth watching.

What is Guardian Capital Group stock price?

On 2020-09-18, Guardian Capital Group (GCG.A-T) stock closed at a price of $25.