Q: Hi 5i
I read your comments on recent DOO earnings...given your response highlighting slowing economy, share buybacks ect, would you be comfortable holding...I understand one qtr earnings loss does not constitute a trend , but the rush to the exits is of course worrisome,,,,,does your thesis change for this one?.
Recently acquired position.... Held on RRSP so no opportunity for tax loss selling..however 2 year outlook.
thx
jim
I read your comments on recent DOO earnings...given your response highlighting slowing economy, share buybacks ect, would you be comfortable holding...I understand one qtr earnings loss does not constitute a trend , but the rush to the exits is of course worrisome,,,,,does your thesis change for this one?.
Recently acquired position.... Held on RRSP so no opportunity for tax loss selling..however 2 year outlook.
thx
jim
5i Research Answer:
Long term, no. It is a highly cyclical company getting impacted by an interest-rate induced cyclical slowdown. We would be fine holding but would not yet add (we also have comments on that as well posted just now).