Power builds on your 38% gain

Article Excerpt

Investors tend to value simplicity over complexity in their stock purchases. Power Corp. offers you top assets, but its complex holding company structure draws attention away from its investor value. Now, though, Power plans a major reorganization that’s a plus for investors. It will simplify its structure, which should boost shareholder value. That’s because Power is subject to the customary “holding company discount” (the tendency of holding companies to trade for less than the total value of their assets). The firm aims to help unlock that discount for investors. POWER CORP., $33.45, is a buy. The conglomerate (Toronto symbol POW; Shares o/s: 414.4 million; Market cap: $14.3 billion; TSINetwork Rating: Above Average; Dividend yield: 4.8%; www.powercorporation.com) is a holding company with a diversified list of businesses. Power holds its financial assets through 65.6%-owned Power Financial (symbol PWF on Toronto). Power Financial’s assets include 67.6% of insurer Great-West Lifeco and 61.5% of mutual-fund provider IGM Financial. Through its 50% stake in Parjointco, Power Financial also holds 55.5%…

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