Q: Can you provide an update on AIF.
5i Research Answer:
AIF is down 13% this year, bringing market cap to $2.1B. It had a double miss in Q3, with EPS at 38c (45c expected) and sales at $133M ($134.2M) EBITDA also missed, by 2%. The balance sheet is strong, with about $200M net cash, and good growth is forecast for next year. Cash flow is decent; insiders own 5%. After its earnings release several brokers lowered their target prices. We think it is OK, but we are less sure about the sector (real estate, consulting) outlook. We do not think it needs to be owned right now.