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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
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Hammond Manufacturing Company Limited Class A Subordinate Voting Shares (HMM.A)
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Preformed Line Products Company (PLPC)
Q: My electrification theme has done remarkably well lately, in fairness I have owned HPS.a for many years, but now what?? They each appear to shifting from value plays to growth plays and while my gut says to take profits my brain says the trend is your friend and hold until growth plateaus. Would appreciate your opinion on the three of them and my favourable dilemma.
5i Research Answer:
We have HPS.A comments posted. HMM.A looks fine, and is very cheap, but its small size holds back our interest. Growth is solid, but debt is high. PLPC looks better to us, even at a higher (but still cheap) valuation. Growth and momentum are impressive, the balance sheet is fine, and despite its gains it still has no analyst coverage. With 32% sales growth in the recent quarter it is setting up well. Its size increases volatility but we would be comfortable letting it and HPS.A ride.