Q: Hi,
The last question/answer about MEQ was in June. There was something about it on
BNN Bloomberg, and I'm interested in your thoughts. You earlier (June) mentioned debt, but that it's also a potential strong compounder.
I'm interested in your thoughts. A possible purchase today? As well as reasons why or why not, please.
Thank you for your service!
The last question/answer about MEQ was in June. There was something about it on
BNN Bloomberg, and I'm interested in your thoughts. You earlier (June) mentioned debt, but that it's also a potential strong compounder.
I'm interested in your thoughts. A possible purchase today? As well as reasons why or why not, please.
Thank you for your service!
5i Research Answer:
MEQ does have a high debt profile, but it has been strengthening its balance sheet over the years, and free cash flow remains at attractive levels. MEQ has a strong track record of growth, and its affordable mid-market units tend to be stable through cycles. We think it has managed this real estate market well, all things considered, and we would be comfortable slowly averaging into a position here, watching if momentum improves.