TF is a $574M company that pays a yield of 10%, analysts expect decent sales and earnings growth this year, with a slight decline into next year, and it has been working on reducing its debt load over the past few years. It uses most of its cash flow to pay dividends, and partially repurchase shares. It has a decent balance sheet, and profit margins are OK, however, there are recent concerns with loans it has provided to Groupe Huot, a Quebec-based real estate developer. TF has moved to put a receiver in place to resolve its loans with Groupe Hot via a sales process. The Commercial Real Estate industry in general is facing challenges right now, and although TF's fundamentals are decent, we would prefer to wait until there is more clarity in the space before entering.
5i Research Answer: