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Magna International Inc. (MG)
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Magellan Aerospace Corporation (MAL)
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TELUS International (Cda) Inc. Subordinate Voting Shares (TIXT)
Q: Hello 5i Team,
I have sold MG at the top, is it a buy at this level? the stock momentum is good, car sales are on the upward momentum in the US.
You have B+ rating on MAL, do you still feel positive after the last Q?
Would you add to an existing TIXT (loss position at this point) at this level representing now only 1% of my portfolio (given your B+ rating for the company)?
I have sold MG at the top, is it a buy at this level? the stock momentum is good, car sales are on the upward momentum in the US.
You have B+ rating on MAL, do you still feel positive after the last Q?
Would you add to an existing TIXT (loss position at this point) at this level representing now only 1% of my portfolio (given your B+ rating for the company)?
5i Research Answer:
We continue to like MG for long-term hold and feel that its cyclicality is acting as a headwind currently. We would buy it at this level and adopt a bit-by-bit position-building strategy.
MAL: We think it needs to be revisited and requires more patience from investors. The balance sheet has deteriorated and earnings have been hit hard. Things are expected to recover over the next few years. The backlog is still decent.
TIXT: We do like TIXT's growth prospects, but the current deteriorating fundamentals have been worrying investors. Much of which was to fund an acquisition which will likely be a good decision in the long run as the cash flow profile improves. We would like to see some positive momentum before stepping in.