Q: ATD: own small position - 1000 shs in NON-registered - shares have been stagnant for quite a while. Thinking of selling and buying CJT or TFII for turn around. Comments please.
5i Research Answer:
ATD reported good earnings and raised its dividend last night. We continue to like it. The question here is whether cyclical stocks will do better. Under the right conditions, they probably will. In a weak economic scenario, though, probably not. ATD is down this year, but has still outperformed both CJT and TFII by a wide margin. For a cyclical play we would prefer TFII today. But we would not view ATD as a 'sell' and a switch here, while we would be OK with it, will mean a shift in focus and likely higher risk if the cycle doesn't turn. ATD is still the 'safer' call by far.