Sagicor Financial Corp (SFC.TO) - Stocktrades Canada

Hey guys – have you guys looked into SFC.TO? It’s a leading financial services company based in the Caribbean with more than 180 years of history. it currently trades at less than BV and has a decent dividend at 5%. One year PT of $9 (base case) and $12 (bull-case). The downside is that it trades very thinly…but, this could be because few investors may know about this hidden gem? Would appreciate your thoughts. Thx.

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Asked on April 19, 2021 9:32 am

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HI Abbas,

To be honest - there is nothing attractive about Sagicor. If you look at its chart, it did nothing since it listed back in 2017 and then dropped but has yet to recover since the pandemic. The low volume of this stock likely turns away many investors as it would be difficult to move in and out of positions.

Revenue has been flat over the past few years and it has negative earnings. For a financial stock, you should be investing in stocks with positive income.

Overall, it is a stock that I would not be interested in. So many more insurance companies on the TSX that are more attractive - we have several on our Bull Lists. Sure it might rebound to the $9-10 level it traded at previously, but even at that it is not something I am interested in as a long-term investor.

Mat

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Posted by Mathieu Litalien

Answered on April 20, 2021 4:33 am

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