Q: ...cix popped
...my breakeven is 20
...should I bail...given industry weakness
...my breakeven is 20
...should I bail...given industry weakness
5i Research Answer:
The sale of 20% of its US business comes at a very good price, and highlights the value of its remaining ownership. While earnings growth is muted, CIX with this move becomes more of a value/asset play. Some brokers have lowered targets on this news, but consensus is that this deal is better than if the company had proceeded with a US IPO. We cannot get personal but with the valuation and dividend we think this can still be held.