Q: What do you think of the bought deal and the merits of an IFP investment moving forward? Shares look pretty cheap, debt notwithstanding. Thx
5i Research Answer:
It's always tough selling shares after your stock has declined 40%. But IFP has a lot of debt and is losing money, and considering tariffs and an uncertain outlook, chose to improve its financial condition at the expense of dilution. It is cutting lumber production, and tariffs remain a key challenge. This looks to us like trying to catch a falling knife, and we would be cautious, considering likely tax-loss year end selling. We would not be interested today.