Q: Is POW a Buy? A Globe article yesterday by Paul Carter of Capstone Mgt. suggests that by owning 69% of GWLifeco you are effectively getting GWL for free. This is because at the current stock price, POW's Market Cap roughly equals that of its stake in GWL.
Thanks!
Thanks!
5i Research Answer:
We had some comments on POW on Wednesday. GWO market cap is $53B. POW owns 71%, for a value of $37.6B. POW market cap is $40B. The math works, though does not include taxes (which would be very significant). Still, it does highlight the low valuation of POW.