Q: This question concerns the materials sector in a well-diversified Canadian portfolio (~30 holdings), focused slightly toward growth. Our target is for a 5% weight in this sector.
Currently the sector is underweight at a 2.5% allocation with NTR being the only holding. We are open to either doubling up on NTR or adding an equal amount of SJ. Which would be your preference and why?
For each of NTR and SJ Please rate (1-10) in terms of your conviction to buy today, along with suggested target buy range [great, okay].
Currently the sector is underweight at a 2.5% allocation with NTR being the only holding. We are open to either doubling up on NTR or adding an equal amount of SJ. Which would be your preference and why?
For each of NTR and SJ Please rate (1-10) in terms of your conviction to buy today, along with suggested target buy range [great, okay].
5i Research Answer:
We like both, but from a diversification standpoint we would add SJ. It is doing very well and offers good growth. Main reason is diversity but SJ is a solid name with good fundementals. NTR 6 (some cyclicality limits its level, $74, $77). SJ 7.5, $60, $62