Q: I noticed that in a recent question about the five best large cap stocks, CSU is in the lineup. Does that mean that all of your concerns about this company have been eased? Also, as I am growing more conservative in my tfsa I am wondering whether you would see all or some of these companies, despite being large cap, therefore less growth, as good candidates for a tfsa?
Thanks for the great service
Thanks for the great service
5i Research Answer:
Note, only CSU was listed in the question so we cannot comment on the other reference.
We would not say that ALL of our CSU concerns are done, but we are confident still in its long term future, and if we look beyond short term volatility we think it remains in the top group of Canadian large caps. The new boss has promised 'business as usual' and we have no reason to expect anything less than the usual consistent cash flow machine to continue. The AI threat remains one concern, but we do not think it is as bad as sentiment would indicate, and is also priced in a bit with the recent decline.