Q: Hello,
I recently purchased shares and am up quite a bit. Do you recommend continuing to hold? Risks ahead? Trim position, or exit completely?
Thank you
I recently purchased shares and am up quite a bit. Do you recommend continuing to hold? Risks ahead? Trim position, or exit completely?
Thank you
5i Research Answer:
We cannot provide personal direction so these are our general comments. BBD.B is showing solid momentum and is cheap at 13X earnings. EPS last quarter nicely beat estimates. But revenue fell last quarter on lower deliveries, and debt remains very very high. Short term momentum could carry it further, and there are few comparables for Canadian investors. But it has not generated much shareholder value over 30 years, and remains highly cyclical. We would prefer trimming into strength, and would not see it as a hold-forever stock, certainly.