Q: The recent spin off has created CPKR. This stock started trading over $17 a couple of days ago. Today it was trading under $14.
Can you please provide us with your insights with respect to this stock going forward. Is it suitable for a conservative investor.
Would you consider today’s closing of $14.40 as an attractive buying level ?
Thank you as always for your insight.
Can you please provide us with your insights with respect to this stock going forward. Is it suitable for a conservative investor.
Would you consider today’s closing of $14.40 as an attractive buying level ?
Thank you as always for your insight.
5i Research Answer:
Canada Packers (CPKR) is focused on the processing and sale of pork, spinning out from Maple Leaf. Being in the staples sector, it will be a bit of a slower growth name, and demand might be low in the near-term as many investors who don't know the name might view it as an easy source of cash. We don't think an investor needs to rush out and own CPKR but it is one to watch, particularly if the share weakness continues.