Dundee Still Offers Hidden Value

Article Excerpt

DUNDEE CORP. $52 (Toronto symbol DBC.A; Aggressive Growth Portfolio, Finance sector; SI Rating: Average) has gained nearly 60% in the past three months, as rising real estate and resources prices pushed up the value of Dundee’s investment portfolio. In fact, this portfolio had a market value of $28.24 per Dundee share at June 30, 2006, excluding its consolidated subsidiaries. That means you can buy Dundee’s wealth management businesses, which generates roughly 75% of its revenue and operating profits, for around $24 a share. In the three months ended June 30, 2006, Dundee earned $1.38 a share, up sharply from $0.16 a year earlier. Most of the increase came from gains Dundee realized on the sale of shares by a subsidiary. Revenue rose 38.6%, to $246.8 million from $178.1 million. Dundee recently began offering retail banking services, such as savings accounts and mortgages. This is a highly competitive field. But Dundee will sell these products through financial planners instead of branches, which should…

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