Wealth manager lifts Dundee’s earnings

Article Excerpt

DUNDEE CORP. $17 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 73.8 million; Market cap: $1.2 billion; Price-to-sales ratio: 1.0; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is a holding company with subsidiaries in three main areas: wealth management, real estate and resources. The company’s main asset is its 49% stake (61% voting interest) in DundeeWealth Inc. (Toronto symbol DW), which provides investment-management, securities-brokerage, financial-planning and investment-advisory services. DundeeWealth also owns the Dynamic family of mutual funds. In the three months ended September 30, 2010, Dundee- Wealth’s earnings jumped 104.7% from a year earlier. That’s mainly because rising stock markets have increased the value of its assets under management by 26.8%; DundeeWealth’s fee income varies with the value of these assets. Rising mutual-fund sales are also fuelling this subsidiary’s earnings. Dundee Corp. is a buy. buy…

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