Complex Dundee Offers Hidden Value

Article Excerpt

DUNDEE CORP. $38 (Toronto symbol DBC.A (old symbol DBC.SV.A); Aggressive Growth Portfolio, Finance sector; SI Rating: Average) provides investment management and brokerage services, mainly through 62%-owned Dundee Wealth Management Inc. It also owns the Dynamic family of mutual funds. These operations supply over 80% of Dundee’s revenue and profit. The company also develops real estate projects, mainly in Western Canada, and invests in junior resource companies, including a 51.3% stake in Eurogas Corp. (oil and gas exploration) and 18.6% of Breakwater Resources Ltd. (zinc and copper). Revenues tripled in five years Revenues jumped from $248.7 million in 2001 to $933.7 million in 2005, mainly due to acquisitions that expanded its wealth management operations. It lost $2.17 a share (total $57.0 million) in 2001, due to writedowns of its investment portfolio. Investment gains helped push Dundee’s earnings up, from $1.96 a share ($50.3 million) in 2002 to $3.97 a share ($101.0 million) in 2003. Earnings fell to $2.49 a share ($65.8 million) in 2004, but…

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