Power owns top assets

Article Excerpt

POWER CORP. $26.00 (Toronto symbol POW; Shares outstanding: 414.4 million; Market cap: $12.4 billion; TSINetwork Rating: Above Average; Dividend yield: 5.9%; www.powercorporation.com) is a holding company with a diversified list of businesses. It holds its financial assets through its 65.6%-owned Power Financial. Power Financial’s assets include a 67.6% interest in 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% of Swiss-listed Pargesa Holdings SA. Pargesa has 95% of its assets in seven large European firms. In the three months ended September 30, 2018, Power Corp.’s earnings per share dropped 40.2%, to $0.61 from $1.02. Power Financial’s per-share earnings improved 24.6%, but were offset by losses on investments at the company’s Sagard Capital business, compared to big gains a year earlier. Meanwhile, Power Corp. stock yields a high 5.9%. Power Corp. is a buy. buy…

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