Q: Could have I an update on your views of Boyd group. 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:
BYD has been in the process of reaccelerating topline growth (both organic and through acquisitions). There were some early signs of an acceleration in topline growth, such as a return to growth in used vehicle prices, combined with the return to positive same-store sales in the most recent quarter, which management believes suggests that industry conditions are starting to normalize. The company’s growth in the near term could fall within the range outlined in the company’s five-year plan of 3%–5% same-store sales growth. Overall, we think investors need some patience with the company. CLS and BN likely have better growth, or PNG if a small cap is of interest.