Power Financial gets more Exposure

      Yes it is true;the extra exposure comes from Blogdaleupsome.This is the first time Blogdaleupsome has covered this financial giant.Blogdaleupsome has primarily covered small "caps" and PWF does not qualify as a small cap.It's market capitalization is about $24 billion.The reason Blogdaleupsome is now more interested is because it is showing signs of growth.The men in this picture are laying cables to add more plant;they are ready to expand.
                      

The Second Quarter Report

Power Financial reports that net earnings was $545 million or $.76 per share compared to $505 million or $.71 per share in Q2 2016.For six months net earnings were $1,029 million or $1.44 per share compared to $764 million or $1.07 per share.It is at the present pace on track to hit $2,200 million and almost $3.10 to $3.25 per share for 2017.This would lower it's P/E (price/earnings) ratio to about 11 times.

Power Financial is a holding company;it's chief subsidiaries are Great West Life (67%),IGM Financial (62%) and Pargesa S.A. (28%).Power Financial will have sufficient earnings to increase their percentage share of all three in 2017.In addition, Great West Life's chief subsidiary Canada Life has acquired an European company called Retirement Advantage and IGM Financial has acquired Financial Horizons.Financial Horizons is the largest managing general agent (MGA) in Canada.PWF also bought a small chunk of China Asset Management to now own almost 15%.This blog believes that these acquisitions are immediately accretive and they will add to adjusted earnings in 2018 and 2019.

New Stuff on the Horizon

Operating income has gradually risen the last 3 years while net shareholder income has been steady around $2.1 billion.This means that even if they are taking ample deductions from operating income that net income is substantial.They are able to add to their ownership share of Great West Life and Investor Management every year.But they own 68%and 62% now;any other purchases will be locked in.This blog sees little gain in increasing ownership share to 75% for example.But increasing ownership of Pargesa S.A. to 40% is a worthwhile target.So is buying someone like CI Financial or other new investments (like the girls in the caption below).Look for a 10% increase in earnings in 2017 over 2016.And if management wants to move the stock price maybe a $.05 dividend increase as well.      

  use Blogdaleupsome for business forecasting  ; use Blogfdaleupsome for financial advising