Jason DonvilleOnex CorpONEX.TOHOLDOct 24, 2014

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.

Consolidating over the last year. Rally off the bottom has not been terribly convincing. If cost of capital is rising, makes it tougher on these businesses. You'll do fine, but he'd rather own companies that are more leveraged to public, not private, markets. Try TROW, BAM, or CIX.

Brilliantly run for the last 30 years. They've made many successful investments, but the Westjet buy was untimely and slowed down Onex. But post-pandemic, airline travel will really pick up. So, it's now cheap in PE, though the dividend is only 0.5%. Onex hands so much stuff, so you don't know what business will work or bite them. Overall, this is fine.

An acquirer of private businesses and long-established. Strong managers. They began expanding into distresses credit, so there could be opportunities now. They bought Gluskin-Sheff, a private wealth manager for the rich which they rescued from floundering. Synergy here is good. ONEX is a fine company, though pays little in dividends. You can buy this.