Q: Please comment on its most recent Q. Would you continue to hold or is there another name which you would buy as a replacement? Is BN or CSU a good proxy?
5i Research Answer:
BN we think is a better company as well as proxy. CSU we like a lot but is not really comparable to ONEX. Due to its business, ONEX numbers are highly variable. Quarterly results are not overly meaningful and predictions/estimates are near impossible. ONEX earned $10M or 13c per share, compared with a giant loss in the comparable period. Asset management loss fell to $26M from $69M. ONEX raised $1.8B in fee-generating capital in the quarter. We consider it OK overall, and it has potential, especially as interest rates rise and capital markets recover. The stock is up 58% in the pas year (BN is up 47%). If only one is to be held we would switch to BN but in and of itself we would consider ONEX a HOLD today.