Q: Would you finally pull a plug on ADW.A:CA since its value has been relentlessly going south ? Your hopes expressed in May 2023 report have not materialized in the stock valuation. Having lost over 50% of its value in my portfolio I am not longer optimistic about it recovery in foreseeable future.
5i Research Answer:
With its high debt, small size, anemic growth and not-100%-safe dividend, there are certainly risks here. While we do think there remains some turnaround potential, and it has not been very long since our update, at this time we would not see it as a need-to-own stock. We think if a tax loss applies then a tax sale and a re-examination next year makes sense. Buyers will have time, if it is indeed going to turn.