Q: Alaris reported Q4 results yesterday and they were mixed. Although they recently increased the dividend by 9%, and reported increased revenues in Q4, distributable csh flow was down significantly. They give reasons for that, but I am left wondering how genuine they are. Are you worried about the reduced cash flow or are you ok with their explanation? i have a full position and a nice profit in it, but i am wondering if I should reduce my holding. Is it a buy, hold or should I reduce my position?
5i Research Answer:
We have no reason not to believe the company. They have always been forthcoming and AD has experienced prior issues that were explained and resolved over time. We would see it as a HOLD and would not change a position size unless it was large. It is a small company and it has seen drawdowns in the past But we have no reason to expect more problems.