IGM just came out with December mutual fund sales and I'm guessing the stock reacted down over 2% because reported 'net new money' was lower. Funds under management are at record levels.
I have a buy price of $42 on this stock however I am beginning to think that is a bit conservative. This is a stock I want buy at some point, however if it's cheap now, I don't want to let it get away.
Reasons I want to own it for the long haul:
Demographics - I believe the next 10 years or so will be very good for the industry as a whole.
Debt is low, ROE and ROA are strong.
Industry Leader in Canada with great brands.
I like the dynamics of the industry. Cashflow is multiplied when MERs are paid on rising assets under management.
Great (albeit short) dividend growth history.
Looks like they will probably raise the dividend in March, 2007 to probably about $0.43 / share (a 3.5% yield on today's price).
The last year it has returned a measly 0.46%. It looks like 2006 was the worst year for share appreciation on record, while the dividend is approaching a 25% gain in the same timeframe.
Maybe it's not cheap enough to get in yet? Still seems a little rich on a P/E basis.
What are other holders or watchers opinions on this one?