Q: Hi Peter
took a hit and pays a nice dividend
I have some shares in Dol and ATD
like to start a half position in CTC.A
would you wait until a bottom forms?
what would you think is a decent entry point? thanks
Michael
likes Cdn companies as I shop at Cdn Tire and like
the dividends
took a hit and pays a nice dividend
I have some shares in Dol and ATD
like to start a half position in CTC.A
would you wait until a bottom forms?
what would you think is a decent entry point? thanks
Michael
likes Cdn companies as I shop at Cdn Tire and like
the dividends
5i Research Answer:
Of course, no one rings a bell at the 'bottom' so it is hard to time. Most of CTC's issues seem to be stemming from a slowdown in consumer spending, higher inflation and higher interest rates. In terms of what the company has done, we do not think it has done anything wrong. But it is a more challenging environment. It is still up 10% YTD, is cheap, and it has survived dozens of economic and other challenges in its long history. We would be OK today 'starting' a position but doubt there is a big rush here in the current negative consumer and market environment. But at 10X earnings its multiple is lower than its historical averages.