ONEX Inc. is updated a rated speculative Buy.
It’s an usual company in that it is mostly an investment fund but also an investment manager. For a number of reasons its GAAP earnings and balance sheet are not helpful. Our speculative Buy rating is based on management’s view that the company has about $67 per share in investments (unencumbered by debt at the parent company level) and that there is a further $18 to $20 value in its stream of investment fees that it collects.