In addition to Cormark, Richardson has also been recently acquired. CF has been in play before, and its scarcity value has gone up again. A recovery in the sectors noted is good for its business. The dividend has grown nicely since the pandemic, but note it has been stopped in prior cycles. Payout ratio is below 25% so we would not expect any issues in the short or medium term. CF has also at times paid special dividends. In 2023, management tried to privatize the company at $11.25 a share. Management agreed to a two-year standstill, which expired recently. Thus, with a lower price now we are sure they or other parties might be interested. We do not like buying 'just' for a takeover idea. But the stock is cheap and good earnings growth is expected regardless. We think $9.75 would work for possible entry.
5i Research Answer: