Power Financial continues to Grow and Grow

  Power Financial filed it's fourth quarter and 2017 report on March 23;this is late as quarterly reports go.Earnings growth was not stellar nor were revenues.But assets under administration ( AUM) increased by almost 10%from $1,404 million to $1,521 million.While market capitalization increased from $23 billion to $23.7 billion.As reported in my last blog in Blogdaleupsome on December13,2017 there have been no recent acquisitions.On the other hand, Power Financial which increases it's dividend steadily again increased it's dividend by 5% to 43.30 cents for the quarter.The stock responded by moving up $1 to $33.00 per share.
            Fourth Quarter
    Adjusted net earnings were below the annual trend in this quarter;they were $547 million which was the same as in 2016.Of this $499 million was a contribution from Great West Life. Power Financial had a charge of $322 million in this quarter.There is no mention of the growth in AUM in this quarter.
      Annual Results
      Adjusted net earnings were a whopping $2,135 million or $2.99 per share which is identical to  the amounts in 2016.Of that $1,791 came from Great West Life.However it in turn must send a contribution to Power Corp.from it's earnings.The amount is not identified but Power Corp. still owns 65.5% of PWF.Figures are not perfectly clear but it appears that the ownership share is falling and likely that PWF is buying back ownership from Power Corp.
         Suggested Changes                                 

            The caption above shows a new rapid speed train.Power Financial has been modernized somewhat but not yet a light rapid train.However recently it shows that it has good top speed.Although details are sketchy it appears that PWF is gradually(1% a year) buying back it's  shares from Power Corp.This blog encourages this; even to suggest a small private placement of equity that it sells to a third party.This will dilute POW's ownership too.This blog also suggests increasing it's share in Great West Life and reducing it's share of IGM and buying IGM's share of Great West Life (4%).The return on investment does not appear to be as high on IGM as for GWO nor Pargesa Holdings.It is time to reappraise their positions in their main investments.Power Financial's annual reports are very disorganized and hard to read but it looks like PWF has a position in Wealthsimple.This should be made more clear as it will affect the price of their stock.         use Blogdaleupsome for financial analysis; Blogdaleupsome has solid financial advice