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CCL Industries Inc. Unlimited Class B Non-Voting Shares (CCL.B)
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Premium Brands Holdings Corporation (PBH)
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Savaria Corporation (SIS)
Q: Hi 5i
I got to the party late on CCL.B (avg. cost $65) and PBH (avg cost $120). SIS did well at first (avg cost $8). You have all 3 as B+. Over the last 5years none of the 3 has done much. Would appreciate your thoughts on why to continue to hold and any catalyst that could get them going.
Thanks, Greg
I got to the party late on CCL.B (avg. cost $65) and PBH (avg cost $120). SIS did well at first (avg cost $8). You have all 3 as B+. Over the last 5years none of the 3 has done much. Would appreciate your thoughts on why to continue to hold and any catalyst that could get them going.
Thanks, Greg
5i Research Answer:
We consider each of these names to be 'value' stocks or 'boring', but certainly not 'bad'. Each of these has a good market share, business resilience, good cash flow profile, margin stability, and decent growth history. Not flashy by any means, however, the possible catalysts for each one may be improving margins/growth based on changing business mix for CCL, lower interest expenses for PBH, and integration updates or new acquisitions for SIS. Each might do relatively better than other sectors in a slowdown.