Q: Hello,
Go easy used to be one of your top choices for any new money. Now it is not ever mentioned, even when considering small caps.
If they were able to still maintain +20% ROE in Quebec, why do you not want to buy now with it trading 30% lower?
Go easy used to be one of your top choices for any new money. Now it is not ever mentioned, even when considering small caps.
If they were able to still maintain +20% ROE in Quebec, why do you not want to buy now with it trading 30% lower?
5i Research Answer:
We continue to like GSY and the company's fundamentals, but the recent issues at the company and its negative momentum of late is reason for caution in the near term. While this could be the ultimate bottom for the stock, if the issues worsen and its earnings results reflect further problems, then we would have to alter our viewpoint. Largely, we would like to see some of the uncertainties resolve before regaining full confidence in the name. We think as a long-term position this name is strong, but it is close to breaking new 52-week lows, and we would prefer to wait until earnings are released to reassess its financial position.