Power Corporation Of Canada: Insurance Is Tactical With Reinflation Risks
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Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryPower Corporation of Canada offers exposure to insurance and the US, benefiting from a risk of sustained supply-led reinflation due to the Iran war.PWCDF trades at a 28% holding company discount, providing a margin of safety, though not unusually wide versus peers.Great-West, the primary driver, posted strong results: ROE up to 18.2% and double-digit base earnings growth. It's also not expensive relative to insurance average P/Es.Insurance reserve portfolios are positioned to benefit from rising yields, offering an inflation hedge and tactical value versus broad insurance ETFs.Power Corp is both tactical and value-efficient.Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » J Studios/DigitalVision via Getty Images Power Corporation of Canada (PWCDF) represents a broadly interesting bet in that it gets investors exposed primarily to insurance and to the US (as we mentioned in the previous coverage), which playsThis article was written byValkyrie Trading Society5.53K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.