Q: In 6/23,EIF did a $100m Bought Deal @ $52.25.Since then it has gone south to close today at $45.62.So far,no usual Jan.bounce. Is it timely to add/buy? Will it returns to the above $52.25.Thanks for U usual great views & advices A comment on Doo.In 5/22,closed a Dutch Auction for some 2.4 m shares at $103. per share.And now Bains its biggest sharehoder is selling 2m shares @ $91 on a Bought Deal basis
5i Research Answer:
On DOO, keep in mind Bain has a different agenda than the company. It may need the money for other investments, or may simply be adjusting its portfolio. We would not read much into this, considering it still owns 18.3% of the company and 30% of the votes. On EIF, at 14X earnings there is room for the stock to rise. It is hard to predict prices but 'at least' 10% EPS growth is expected this year. With this, and a rate pivot, we think the stock should do OK.