I sold IGM earlier this year for all the reasons you outline, but your timing was much better than mine
I think a position in PWF is enough exposure to IGM, with other assets to balance the risk.
IGM Financial (Symbol-IGM)
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Re: IGM Financial (Symbol-IGM)
I sold out (at ~$40, IIRC) around when IGM announced the MER reductions. My thinking was simpler: IGM's business model must presuppose that investors are ignorant of or indifferent to MERs, whereas MER reductions must presuppose that investors do know or care about them. An inconsistency to be resolved by .... selling. Moreover, and as important, I also hold PWF, and the duplication was nagging at me. I was looking for a reason to bail on IGM. I haven't for a moment regretted the decision, notwithstanding that the price is now ~$55.JaydoubleU wrote:I sold IGM earlier this year for all the reasons you outline, but your timing was much better than mine
I think a position in PWF is enough exposure to IGM, with other assets to balance the risk.
Re: IGM Financial (Symbol-IGM)
This is why IGM is still in business I continue to hold my shares. Even if everything said is correct I hope management will figure out what if anything they need to do.IGM's business model must presuppose that investors are ignorant of or indifferent to MERs
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Re: IGM Financial (Symbol-IGM)
So this was an interesting move announced today
Power purchased a 10% stake a few years ago, so unsure why they wouldn't just increase their stake directly. I honestly anticipated IGM getting eaten up by the parent PWF due to its low valuation over the past year, but looks as though that's not the plan.IGM Financial investing $468-million for 10% stake in China AMC
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Re: IGM Financial (Symbol-IGM)
If PWF did that, I'd sell my PWF holding immediately. I prefer they sell down their IGM interest. The IGM business is likely death by a thousand cuts....despite their attempt to diversify away from the old IG model. This smells very much like a DH Corporation attempt to re-invent itself.brad911 wrote: I honestly anticipated IGM getting eaten up by the parent PWF due to its low valuation over the past year, but looks as though that's not the plan.
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Re: IGM Financial (Symbol-IGM)
IGM took a beating during the last 5 trading days in advance of its ex-dividend date. Seems unusual.
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Re: IGM Financial (Symbol-IGM)
The last time IGM Financial announced a dividend increase was at the end of 2014. That tells me that either this company is having problems or else they are not interested in their shareholder's anymore. Personally, in this case, I think it's the former.
I bought shares of IGM in 2003 and again in 2005. Sold all in 2009. Never tempted to buy in again since. No regrets.
I bought shares of IGM in 2003 and again in 2005. Sold all in 2009. Never tempted to buy in again since. No regrets.
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Re: IGM Financial (Symbol-IGM)
I bought POW a few years ago because of what I thought was extreme undervaluation. I chose POW over PWF because it was one step further removed from IGM which I regarded as the weakest division. I believe the high MER poorly performing mutual fund model is dead. The recent quarter saw PWF miss while POW handily beat, thanks to its mysterious "other" investments.