Q: I have owned this stock for a long time and it now accounts for 6% of my portfolio. I normally trim around that percentage unless the stock is seen as having continued growth and reasonable stability. I see that it is over 6% in the 5i income portfolio. However, I still bear the battle scars from a couple of past short reports on this company and although it has obviously recovered from those attacks, I can't help but wonder if something/someone is lurking in the weeds. I know you don't have a crystal ball but given its history, would you be comfortable letting this company grow to a 7% level which is about the max for me?
Appreciate your insight.
Paul F.
Appreciate your insight.
Paul F.
5i Research Answer:
We would be comfortable. EIF has proven itself over numerous downturns and attacks and keeps delivering the goods. This cycle, it may benefit from its industrial exposure and its 'less-vulnerability to AI' status. Valuation is OK and there has not been any notable insider selling which adds to our comfort level.