Q: Hi 5i team,
I have two equal half positions in ATD and DOL and I'm looking to simplify by consolidating into one name. Which option is the best for my RRSP? I would also appreciate some information on why it is the best option.
Best,
Matt
I have two equal half positions in ATD and DOL and I'm looking to simplify by consolidating into one name. Which option is the best for my RRSP? I would also appreciate some information on why it is the best option.
Best,
Matt
5i Research Answer:
We would be mostly indifferent here, but may side with DOL for the reasons below.
We would be largely indifferent in an RRSP but would side with DOL today if just one. Size is one reason: it is 1/3 the size of ATD and thus simply has better potential and leverage to deals. It is expected to grow faster and it is also doing significantly better than its peers in the industry. We would also consider it more of a takeover target (low probability, but still higher than ATD).