Q: Considering adding to a small position that I'm even on, according to RBC, there are only 4 analysts covering this stock, 1 sell, 1 hold and 2 buys. I know 5i highly regards this company, in my mind for a good reason, I would have thought it would have more than 4 analysts and would have had a better rating. Curious why someone would rate it a sell?
5i Research Answer:
Bloomberg shows nine analysts, six BUY, 2 HOLD, 1 SELL. Some investors/analysts do not like its (complicated) accounting. Some are turned off by the Carney connection, or the headquarter move to the US. Earnings can be 'chunky' and vary with asset dispositions. But, it has proven itself to be a very strong compounder over multiple decades. Note that every trade on every stock has an opposing view. The stock is cheap at 15X earnings, and it has a massive amount of capital ready to deploy on deals.