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ATS Corporation (ATS)
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Aritzia Inc. Subordinate Voting Shares (ATZ)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Hi Team,
I was looking to add funds to one of the following 3 names: Bn, ATZ, or ATS. If had to choose which name would be the best buy today? My intention is to buy and hold long term.
Separately, what's your take on recent market negativity? Things seem to be escalating to the down side with Powell continuing to have his rosey goggles on continuing to raise rates as banks continue to fail, literally during his bumbling speech telling the world how solid US banks are? I know my confidence in the guy has dwindled as of late. Perhaps now is not a good time to buy and I should wait a bit with any new purchases? Opinion? Thanks
Shane.
I was looking to add funds to one of the following 3 names: Bn, ATZ, or ATS. If had to choose which name would be the best buy today? My intention is to buy and hold long term.
Separately, what's your take on recent market negativity? Things seem to be escalating to the down side with Powell continuing to have his rosey goggles on continuing to raise rates as banks continue to fail, literally during his bumbling speech telling the world how solid US banks are? I know my confidence in the guy has dwindled as of late. Perhaps now is not a good time to buy and I should wait a bit with any new purchases? Opinion? Thanks
Shane.
5i Research Answer:
Although we like all names mentioned. If we have to pick one we would side with BN. The recent drop in share price makes it more attractive, but it is also the largest of these three and the most diversified by business. It has a lot of capital available for deals if markets are weak.
The recent Fed interest rate hike was largely expected, 25 basis points to 5.25%, The Fed also is showing commitment to bringing inflation to 2%. But, despite this, employment and corporate profits are still strong. We think the FED pauses soon and we may see a small economic dip, but the market is showing resiliency and will look forward. Thus, we think it is ok to continue to buy selectively.