Q: I have a significant capital gain with WSP. Should I be concerned about this "Spruce Point" attack (known for targeting Canadian and Quebec-based companies)?
Thanks
Thanks
5i Research Answer:
We would not panic here; WSP has managed its affairs very well for two decades, has shown consistent earnings growth and good cash flow. Its acquisitions have been successful and the stock is up 6-fold in the past decade. The report has created some short term panic but in terms of companies to short we would not consider it that good of a target. The report of course is biased, but we prefer to look at the longer term performance of the company.