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John Polomny
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John Polomny is an individual investor and speculator seeking unique, overlooked, and well researched opportunities and speculations from all over the world.
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  • Why I Am Buying Canaccord Genuity  2 comments
    Feb 9, 2014 6:12 PM | about stocks: CCORF

    Looking at a chart of the TSX, which is laden with resource stocks, it appears that the bottom has been put in and 2014 will be a year of recovery. There also many analysts which think that this year will be a rebound year for many junior resource stocks. As these are cyclical stocks and we have been in bear market for the last couple of years I am looking for a recovery.

    If a recovery in fact appears and these resource stocks move higher a company like Canaccord will benefit as a big part of their business is geared towards doing financings and providing advisory services to these type of companies. This could be a more conservative way to play an upturn in the capital markets in Canada as the company is debt free, has $300 million in cash, and has assets under management growing. In addition the company has been buying back stock along with paying a dividend that is around 2.5%.

    The company last week came out with earnings that exceeded expectations. Here is the link. Peter Hodson, who used to work at Sprott Asset Management and is now the proprietor of 5i Research was on BNN last week and had Canaccord as one of his top picks.

    Peter Hodson on BNN

    I will be looking buy next week on any weakness.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CCORF over the next 72 hours.

    Stocks: CCORF
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  • User 9636831
    , contributor
    Comments (19) | Send Message
     
    What are your thoughts on Canaccord's lack of buying back shares since February 11th announcement? Note that the purchase of 4,200 disclosed on March 17th is meaningless.

     

    This lack of buyback has not depressed the stock price.
    18 Mar, 02:18 PM Reply Like
  • John Polomny
    , contributor
    Comments (494) | Send Message
     
    Author’s reply » Not that worried as of now. If they do not buy any shares for many months than I would be more concerned. However share buybacks are just one way to return capital to shareholders. The dividend is good also.
    18 Mar, 03:55 PM Reply Like
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