CI Financial Corp (CIX.TO)

CI Financial (CIX-T) or Power Corp (POW-T)? If this had a pullback to $25.14, where it typically trades in terms of valuation, he would be all over this. Yield of 3.8%. His model price is $44, so it looks quite attractive.

BNS-T sold most of its stake in them. It is not particularly cheap or interesting.

Biggest independent mutual fund company in Canada. Very strong management team and has clearly done very well for shareholders. Now that they are fairly well free of bank of Nova Scotia’s (BNS-T) influence, they probably have more room to grow. Trading like they are a leading organization and he has always had trouble with how much people are paying for these organizations. If you own, you could probably stay with it and enjoy the dividends, but it is not the cheapest stock you could find.

They do a great operating job. Probably one of the best Mutual Funds in the country. They are very cognizant of costs. Dividend is safe.

Bank of Nova Scotia (BNS-T) has sold most of its stake, which is a good thing as most of its overhang is gone, and it is healthy for the company. Has been producing very good results. Has had a bit of a correction and pays a good dividend.

Bank of Nova Scotia (BNS-T) sold most of their interest. The remaining 7.7% will probably be an overhang as they will eventually be selling that also. She prefers dealing with banks to get exposure to capital markets and wealth management. Stocks in the brokerage area are doing well because the equity markets have been positive. If you want space in the brokerage area, this is a good name.

Surprised him how well this stock has done. Have been the industry leaders for a number of years. They are a great play on the markets. They have it all going right now. It got whacked down on an IPO. He bought more.

This stock fell because Bank of Nova Scotia (BNS-T) owned a large percentage of their holdings and were selling the stocks. Stock went up today because the deal was done. They have a great franchise. The mutual fund industry has come down to only 6 or 7 major players. No longer a high growth industry. With the stock market doing so well, these companies do well during that period. This company has had great performance.

Could Scotia’s (BNS-T) divestiture of its 37% stake impact their ability to sustain the dividend? This has nothing to do with CI’s paying its dividend because it pays its dividend out of the cash it generates from management fees from their funds they manage. Well-run company. Dividend is a little over 3% and is likely to rise. This is a good company and well run.

A terrific mutual fund company. Their assets have absolutely ballooned. Canadians love to pay high prices for mutual funds so the company will gladly sell you a mutual fund and take a 3% management fee. He is very bullish on financial investments over the long-term, especially in Canada.

Scotia disposition is an overhang on the stock and if they have to go into the general market to Sell their $3.8 billion asset, there is the potential that this will cause an overhang for a period of time because they may have to commit to a discount. However, the underlying business is very, very solid. 1-3 years down the road, this will be a longer-term Hold.

Canadian financials in particular have a period of seasonal strength from January all the way through to their earnings. This one reports May 7. The big 6 report closer to the end of May so you still have a bit of time. Chart shows consolidation for the past few months so it hasn’t really played out according to seasonal tendencies. There are better alternatives out there. Revisit financials in August.

One of the things that puzzle people when they look at Canada is that why are Canadians prepared to pay so much to own mutual funds. Highest management expense ratio in the developed world. Fund industry in Canada had a couple of lousy years when they couldn’t sell new product. People were traumatized after the stock market crash of 2008-2009. Now all of a sudden, people are buying new funds and not as worried about the stock market. A lot missed the class of “Buy Low and Sell High”. Doesn’t think it is an outrageous price right now.

Bank of Nova Scotia (BNS-T) have major holding. Do you think it will take it over completely? They would have to pay a premium to acquire a great company like this. This was their original premise, but there has been some friction initially between the 2 companies and nothing much has happened and he doesn’t really know what will happen. Fully valued and expensive, but it deserves a premium price. He has been buying AGF Management (AGF.B-T), which he feels has great value, but they still have some issues to iron out to return to growth before the market comes back into this.

Probably the best performer of the asset managers. He would encourage you to Buy if you saw a pullback. From a valuation and income standpoint, he prefers IGM Financial (IGM-T).