Q: What do you think is the primary reason why EIF is having such trouble getting any kind of traction? Their recent earnings were solid and well received by investment firms, many of whom raised their targets (eg. TD, RBC, Canaccord, Raymond James, ATB). And yet within a couple of days, the stock price has reversed itself and is now back down below $48.00.
Thanks as always.
Thanks as always.
5i Research Answer:
It is hard to say; It is up 7.5% YTD, and still ahead of the TSX, even without its nice dividend. It has been attacked by short sellers in the past, and some investors view the business as cyclical. As an income stock, it has less capital for growth, and some investors are likely using it as a source of cash for more exciting sectors (i.e AI/tech). It raised its dividend in November. The stock is up about 125% in the past decade, and we would not really see much concern here. It is a solid income stock, and might do better as rates fall.