Q: Hi Team,
I've been watching Hammond since you put it the growth portfolio and to this point just watching has not been the right move. In a question prior to earnings you mentioned a price of $57 or ~$55 was a good entry point. Now at $74 it feels like I missed the boat on this one.
Should one enter now or wait? Do you think it will come back down? What would be a decent entry price today for a 3 year (minimum) hold ?
Thank you
I've been watching Hammond since you put it the growth portfolio and to this point just watching has not been the right move. In a question prior to earnings you mentioned a price of $57 or ~$55 was a good entry point. Now at $74 it feels like I missed the boat on this one.
Should one enter now or wait? Do you think it will come back down? What would be a decent entry price today for a 3 year (minimum) hold ?
Thank you
5i Research Answer:
We can't quite predict the answer to these questions. It is a solid company that we like, and it is priced well. It has executed very well, raised its dividend, and is attracting new attention. As its market cap approaches $1B, it may get more eyes on it ($870M now). It is NOT risk-free, but we would be comfortable buying some, to get exposure. More could be bought on any market-decline that is not fundamental based. We would be comfortable at $71 to $72 considering recent strong results and a market that is calming down a bit.