Q: Please comment on their announcement and the potential effects on the stock price
5i Research Answer:
EQB is taking a $20M charge to reduce 8% of its staff and streamline operations. It is also taking a $52M charge writing off some intangible assets and some equipment financing business. While the headline is bad, investors are taking the news in stride. The company wants to cut costs and return to its previous (higher) return on capital goals. We would not expect a huge impact to the stock, it is already quite cheap.