Q: Could have I an update on your views of CCL. Its hold in a RRSP. Would you suggest 1-2 companies with better or same risk profile you would suggest to switch for if you think that’s a good idea .
5i Research Answer:
We like CCL.B and consider it somewhat of a defensive position in today's volatile markets. At 17x earnings, it is reasonably priced, and is up 22% in the past year. Growth is not huge, but steady. The balance sheet has some leverage, but not a worrying amount. The last quarter was not perfect, but there have been some currency impacts here. We would view it as a decent hold today. We do not think a switch is needed, but ATD and DOL are also defensive positions that we like.