This suggests it will be dead money for a while .... Looking at your report on the company it appears that circumstances have changed . In your " Valuation " section you make the following statement .....
" Management noted that with the recent and expected easing of interest rates, EQB is seeing signs of renewed mortgage activity and strong loan growth momentum is expected going into 2025. " ...... Well that didn't happen ...... Are you planning to update that report in the near future ? ....
I own shares { in a RRIF } and am in a bit of a quandary on why I shouldn't sell in favour of greener pastures ..... So please explain to me how I should evaluate holding or selling ? .........Thanks for your terrific service .....
We would segregate the comments between a long-term outlook and near-term expectations.
Over the long-term, we continue to believe that EQB has solid fundamentals, its share price has been in a long-term uptrend, and it has decent growth expectations. Over the near-term, there are some headwinds in the Canadian economy, which can create earnings volatility for EQB, potentially negatively impacting its share price performance.
EQB is on our list to be updated soon, and despite the decline in interest rates over the past year, we have not seen the expected rebound in the housing market, as rates are not attractive enough to spur buying activity, and a rising unemployment rate adds to this pressure.
In the near-term, there are likely better opportunities for names with solid momentum, but at a 9X forward earnings multiple, still with decent growth expected, a 22% five-year CAGR, and the potential that a turnaround could take place in any future quarter, we would prefer to hold here.