# Canaccord Financial (CF.TO)



## Jesse (Jan 21, 2012)

So this stock was to be my first foray into small cap financials and I saw the div and bought without doing my dd. Since Mar, I'm down about 30% and I'm finding it harder to find information about this smaller company and whether there is any point in continuing to hold it.

Does anyone have any insight into this company? Does anyone hold it?

Do you dd, people.

Thanks.


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## HaroldCrump (Jun 10, 2009)

Jesse said:


> I'm finding it harder to find information about this smaller company


What information are you finding hard to find?
It has been a publicly listed company for years, and all the annual reports, MD&A, financial reports, dividend history, etc. is available on the website, SEDAR, and other sources.
There is also a fair amount of analyst coverage.
It is also discussed heavily on Internet forums and blogs (I checked stockchase and stockhouse).

I don't have any personal interest, but not sure what information you are not able to find to do your DD.

As for its recent slide, I don't think it is surprising or unexplained at all.
Look _what_ business they are in, look _where_ most of their business is, etc.

Also, here's a hint for you (which I found by a few secs. of Googling) - look what their main compeititor did a few weeks ago.
Also look what changes have happened in their Sr. management recently.


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## doctrine (Sep 30, 2011)

How does its last four quarterly reports look? If its solid, then you should buy more.


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## rassmy (May 7, 2010)

They did not have a good quarter, they report a loss. I canceled my order, today my limit price was 5.70$.


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## Spidey (May 11, 2009)

Anybody taking a look at this one? Trading at half book value. 8.18% dividend yield. Looks like they've hit a cash flow snag because they handle a lot of resource financing and that has hit a dry patch. Insiders were bailing at about $5.50 which is worrisome. (Current price. $4.89) However, overall financial strength looks reasonable. Doesn't fit the profile of my usual investments, so I'll probably take a pass but just wondering what others think.


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## PMREdmonton (Apr 6, 2009)

There are a couple things about this one's balance sheet that worries me.

The first thing is they have very large accounts receivable and that amount seems to be growing over time.

The second thing is their current ratio is barely over 1 and they have a huge accounts payable reading.

Compared to their assets base which is pretty large right now at 5B they aren't generating much in the way of returns which makes me wonder about how effective management is.

They also seem to have a large recurring expense on their income statement called unusual expense. They seem to have about 10M every year but last year was particularly bad at 40M.

Even though they are paying a fairly large dividend, they don't appear to be earning it as EPS was negative last year.

Finally over the last two years share price has dropped about 70% and that always concerns me that for this long the market has been voting against them. Moreover, the market appears to be correct with ever worsening fundamentals.

The big plusses that I see is they have no long-term debt and BV per share appears to be increasing over time.

So I think there are a fair number of questions that have to be answered before putting any more money into these guys.


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## MrBlackhill (Jun 10, 2020)

No one talked about this one for the past 9 years. Not as if they did great since then...

Valuation metrics seems to tell us it's undervalued...

Negative enterprise value (they have more than 2x in cash the value of their market cap, I hope they will make a move with all that money)
P/E 6.67
P/S 0.66
P/B 1.45
Insiders hold 7.95%
Institutions hold 13.79%
2% dividend yield @ 11% payout ratio
Profit margin 13.33%
Operating margin 19.46%
Return on assets 3.97%
Return on equity 26.40%
Debt to equity 31.28%
Current ratio 1.09
+124.60% revenues YoY
+424.50% earnings YoY
Seems like a bargain?


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## Spudd (Oct 11, 2011)

MrBlackhill said:


> No one talked about this one for the past 9 years. Not as if they did great since then...
> 
> Valuation metrics seems to tell us it's undervalued...
> 
> ...


It's a current pick in the TD quantitative analysis small-cap portfolio. I've been following them for a while for fun, and most of their picks have been good, with a few losers. 

I bought this one back in March when they recommended it, and am up 12% since then.


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