Canaccord Reports But Says Little

Canaccord Capital Inc.'s (TSX & AIM: CCI) reported Q4 results. Poor numbers were expected because of the ABCP debacle that is roiling Canadian Money Markets. Not happy but it was expected under the circumstances. So these guys are responsible for raising money and making it grow. What do they have to say about there own prospects? Precious little. There have been some very major executive appointments.

Changeover in the executive suite is always significant. New capital has been raised which is about equal to what they lost on the ABCP crisis. So therefore the firm is whole and back to where it was before the structured products blew up.

Capital markets are dynamic and these guys are just posturing like its just us chickens in here. Saying that we are waiting for the capital markets to return to normal levels and feeling that you are well positioned to capitalize is a message that this is dead money.

Now if you know anything about Canaccord’s history dead money does not come to mind. Risk yes; losses sometimes; profits the holy grail of course. But just waiting for the market to do something hmmmm.