Q: In the June 22nd answer below you mentioned significant adjustments (to income?) based upon GRT's foreign currency debt. If CDN $ weakens against USD (as is currently the case) would this be positive or negative to income? Thanks.
It is often difficult to compare a single company with an ETF, of course, because of the lack of diversification. GRT is fairly cheap at 11X cash flow, and offers a good yield. It is buying back stock and it raised its distribution in February. Cash flow rose 6.6% in the 1Q and the payout ratio is 67%. The balance sheet is solid.
One issue impacting performance is currency. Almost all of the company's debt is in foreign currencies, so there can be significant adjustments when currencies move dramatically. This does create some uncertainty. The company was also looking at a privatization and decided not to sell; this also disappointed some investors.
We think it would be fine to own. We would also consider Pure AAR.UN and Dream DIR.UN within the industrial space. have a question about 1113
It is often difficult to compare a single company with an ETF, of course, because of the lack of diversification. GRT is fairly cheap at 11X cash flow, and offers a good yield. It is buying back stock and it raised its distribution in February. Cash flow rose 6.6% in the 1Q and the payout ratio is 67%. The balance sheet is solid.
One issue impacting performance is currency. Almost all of the company's debt is in foreign currencies, so there can be significant adjustments when currencies move dramatically. This does create some uncertainty. The company was also looking at a privatization and decided not to sell; this also disappointed some investors.
We think it would be fine to own. We would also consider Pure AAR.UN and Dream DIR.UN within the industrial space. have a question about 1113
