Q: They announced an increase to their credit facility, an indicator that business is improving. What are your thoughts on the company?
5i Research Answer:
Its small size and cyclicality add risks, but it has a 4% dividend, is priced well, and has positive momentum this year. The balance sheet is OK, and about 10% to 15% earnings growth is expected. Note the dividend has not been raised since mid-2021. Insiders own 2%; FFH owns more than 50%. We like it better than we did a few years ago, it does seem back on track. But there is economic risk here, and we might not expect another 69% gain as seen in the past 52 weeks.