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Sonida Senior Living Inc Com (New) (CSU)
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Topicus.com Inc. (TOI $137.99)
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Lumine Group Inc. (LMN $33.09)
Q: I have all three of these with large unrealized gains and I understand the reason for the significant stock adjustment over the past few months, is it time to move on? What has to happen to get the companies back in favour?
5i Research Answer:
We think if the companies can continue to report good numbers, and in particular free cash flow, investors will support them again. The AI fear is substantial, but the companies are not sitting around waiting to be cannibalized. While valuations of some deals have changed, we think if they specifically targeted a couple of acquisitions with higher growth prospects investors would also come back on board.