Dundee Offers Value with Reasonable Risk

Article Excerpt

DUNDEE CORP. $25 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 75.3 million; Market cap: $1.9 billion; SI Rating; Average) provides a variety of financial services, including banking, wealth management and mutual funds through 56%-owned DundeeWealth Inc. (formerly Dundee Wealth Management Inc.). This business supplies roughly three-quarters of its total revenue. Through 78%-owned Dundee Realty Corp. and 16%-owned Dundee Real Estate Investment Trust, the company owns and manages residential and commercial real estate projects. Dundee REIT recently agreed to sell its properties in Central and Eastern Canada so it can focus on its more promising holdings in Western Canada. As part of the transaction, Dundee Realty will manage these properties for the new owners. The new arrangement should improve the long-term prospects of both investments. Dundee also has interests in several junior gold and oil exploration companies. The company’s portfolio had a market value of $7.64 per Dundee share at March 31, 2007, excluding its consolidated subsidiaries. (All per share amounts…