Q: I currently own Sagicor and I'm thinking of swapping into Trisura (which I know you like). SFC pays a 6.1% dividend while Trisura seemingly pays no dividend. Or maybe I should sell half my SFC and put those funds towards TSU ?? Is owning both advantageous ? What do you think of these ideas and can you provide some insight into the reasons for any recommendation?
5i Research Answer:
We still like TSU, and it is twice SFC's size, but it has underperformed it significantly. SFC is very cheap at 7X earnings, and considering TSU is also still not huge, we think owning both makes a lot of sense to diversify sector exposure. TSU does not pay a dividend. We think under $30 would be an attractive entry. It is still expected to show decent growth next year, and the stock has probably been oversold at this point.