Onex Corp (ONEX.TO)

He owned it before. He owns a lot of private equity companies where there's been a big sell-off. ONEX has held up well to these peers. If you own this, let it compound. Not a bad company and not expensive.

Stock's gone nowhere for a fair bit of time. Latest move from 2023 is quite positive, and broke out above $100. With volatility in the markets, these guys pick up great assets and make something of them. Why not capitalize on their expertise? Global, gives you private equity exposure to companies you wouldn't have on your own. Yield is 0.32%.

Very well-run. Still likes it. Their Q2 report noted book value of $150 while shares are $100. At some point this gap will compressed. They heavily buy their own shares.

The CFO likes it on a fundamental basis. He has tolerated some negativity because of the fundamentals but wants to see it hold there.

Will continue to hold. Business performing well. Earnings continue to rise. Strong management team with sharp capital allocation skills. Current share price is cheap. Market not recognizing value in business. $145/share in capital, with a share price below $100/share. 

Wonderful franchise that generates excellent profits. New CEO very experienced. Believes share price should be around $140 / share. Currently undervalued with room for growth. Will continue to own shares. 

More of a niche, smaller, private equity player that gets left out of transactions. Could narrow discount to NAV, say, by using excess cash to buy back shares. But that would reduce ability to do deals. Likely to continue to trade at a discount. Instead, look at BN.

Shares plunged in 2022 and part of this year, but have nearly recovered. Gerry Schwartz is no longer CEO. They've bought and sold many businesses. Onex's intrinsic value is $130-140, but shares trade at $90, so there's a big disconnect by the market. Onex keeps buying back shares and are ramping up acquisitions.

Likes the private equity space. Has rallied 30% since June, but still trading at a discount to NAV. Has a long track record. A great way for investors to participate in areas that are closed to them, making private equity public.

It is going sideways and is on his watchlist. There is lots of upside ahead when it breaks out of its consolidation phase. The breakout hasn't happened yet so he is not buying, but you could trade it - buy it at the bottom of its trading range and sell it at the top. He gives the chart a 5 out of 10 which is not bad.

Very strong management team.
Hard stock to value. Private equity firm.
Trading at discount to net asset value.
High interest rates makes it hard for company to grow.
Better names to own.