We removed TIXT from the growth model portfolio on October 10th as the drop in demand from some of its larger clients is concerning. Execution has not been great, and its debt levels are growing fast. TIXT has an underlying business that generates revenue and profits and is connected with a large Canadian communications name, Telus, but while it's a profitable name, deteriorating fundamentals are of primary concern for investors and for now this outweighs its past few years of profitability and revenue growth. We might expect any positive developments at its upcoming earnings as a potential catalyst for a better valuation, or even a pause in interest rates, but largely, we do not like its negative momentum here.
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