Q: I am down +/_ 25% on North West Health Care. It seems to be going down daily? I'm an income/ dividend investor but would like a bit of growth as well.
Is it time to let this one go or hang on? Would you have a recommendation for a replacement where I might be able to recoup my losses? Thanks.
Is it time to let this one go or hang on? Would you have a recommendation for a replacement where I might be able to recoup my losses? Thanks.
5i Research Answer:
We think NWH.UN is a hold, but would prefer DIR.UN. Investors seem concerned on the distribution and there have been some negative broker comments. Investors are also still digesting the convertible debenture issued in April. Payout ratio was 68% in 2022, and the low valuation we think does already reflect a lot of concerns.