Q: pls comment on WSP short report
last 2 attacks on cdn stocks didn't go well for NUVI and LSPD
last 2 attacks on cdn stocks didn't go well for NUVI and LSPD
5i Research Answer:
We haven't had time to fully review the report, but it is typical in that it highlights a few things that look bad in isolation, and highlights other things that are not important (chubby Montreal club is a stretch). It highlights cash flow as a negative but cash flow has been very solid and free cash flow conversion is also high. Short interest is 0.43% in Canada and 0.24% in the US. The stock is not cheap and the balance sheet is 'a bit' leveraged, but hardly a worrying amount. Earnings growth has been far more consistent than other short targets. We do not want to dismiss it but it does not seem like a strong attack on the company vs others, and the company has managed its affairs very well for 15 years.