Q: Hi 5i
Currently hold small position and would like to know 5i's outlook for strathcona and would you be interested in increasing position size at current pricing..
How would you assess the risk for this one going forward? 1- 2 year outlook...
Is this simply too risky now?
thx
Currently hold small position and would like to know 5i's outlook for strathcona and would you be interested in increasing position size at current pricing..
How would you assess the risk for this one going forward? 1- 2 year outlook...
Is this simply too risky now?
thx
5i Research Answer:
Revenue is expected to decline in the next two years which makes us less interested in the name overall. The balance sheet, profitability and ROE metrics all look fine here. Overall we think it looks ok but the weaker revenue growth outlook gives us some pause here.