RE:I have been 100% correct on CIX.Well said argon12
CI Financial can keep pumping out free cash flows and buying itself back at these super-depressed valuations. The company trades at just 6.5x earnings! Given there is no CAPEX per say, operating cash flows are just streaming to free cash flow. In this market, cash is king and we have no shortage of it! The deployment of cash has been awesome by McApline. To assemble a US business in a short 3 years to over $100Bn assets, it is ripe for a spin out which will generate a cash lumpsum for CI..
Analysts will have us believing the debt is a problem... sure $3Bn worth of debt... did they care to check the financial statements to see that the interest rate on thaat debt is around 3%? Given market rates are higher... can we really consider this debt? Also, maturity dates? $2Bn of that debt due after 2040! Does it even matter in the context of the business's performance? This is not a company that was formed in the last five years... it has been around since the 1960's and will continue to be around... unless it is gobbled up by a larger asset manager or bank..
CI is currently the largest freestanding wealth manager in Canada... perfect acquistion target for anyone wanting to bolster AUM and get a cash printing machine in the portfolio