Q: Hi Peter and Staff
PBH has done well for me overall but not the last couple of years. Meanwhile I had PRMW and dropped it at about $17. Which one do your prefer going forward for a long term hold?
Thanks for all you do
Dennis
PBH has done well for me overall but not the last couple of years. Meanwhile I had PRMW and dropped it at about $17. Which one do your prefer going forward for a long term hold?
Thanks for all you do
Dennis
5i Research Answer:
We prefer PRMW here for a long-term hold. PRMW is the largest scale player in its industry and its business model is resistant to recession. PRMW has also been a stable dividend grower and we think this will continue due to the economics of its business. PBH on the otherhand has seen some softness in sales due to the weakness in consumer spending in the Canadian economy and management has pointed out that this to will likely continue in the near future. For these reasons we like PRMW more for a long term hold as things stand now. We have recently posted report updates on both for more information.