Q: Good morning 5i Team,
If considering buying NTR, FNV or CCO for a 1-2 year hold, could you please rank your current preference with a brief comment. Thank you.
Brad
If considering buying NTR, FNV or CCO for a 1-2 year hold, could you please rank your current preference with a brief comment. Thank you.
Brad
5i Research Answer:
All are going to move with their respective commodities..CCO with uranium, FNV with gold and NTR with fertilizers. CCO has the best momentum, by far, right now, but is also the most expensive. But EPS is expected to double this year. We like FNV and royalty structures in general (less operational risks) and it produces high free cash flow. But little growth is expected this year. But FNV has more than $1.2B cash right now and could buy some growth. NTR is very cheap, but momentum is quite negative and it has a lot of debt. But expectations are very low here and it has 'bounce' potential. We would rank: CCO, FNV, NTR