Q: ATD has had a very nice run over the past year. Having said that, do you view it as more of a defensive play that will not do as well relative to other positions if the Canadian economy starts to grow more rapidly or do you think it is the type of company that will do well relative to others in any economy? I am trying to figure out whether it is starting to look like a good time to trim it back any take some profits. Thanks as always.
5i Research Answer:
Historically, it has performed in all types of economies. That being said, investors do view it as 'defensive' and it is in the consumer staples sector. If the market were to go on a big risk-on rally, we would expect the stock (maybe not its fundamentals) to lag some of the more exciting growth sectors.