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Bank of Nova Scotia (The) (BNS)
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Fairfax Financial Holdings Limited Subordinate Voting Shares (FFH)
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Super Micro Computer Inc. (SMCI)
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Crocs Inc. (CROX)
Q: Mr. Hodson, I recall an appearance of your’s on market call several years back, when you deviated from your small to mid cap Canadian equity mandate and recommended Micron technologies because it was simply ‘stupid cheap’ at the time.
Are there any companies out there, CAD or US that would qualify as stupid cheap currently, and hard to ignore as a result. Are any of them compelling enough to buy?
Thank you.
Are there any companies out there, CAD or US that would qualify as stupid cheap currently, and hard to ignore as a result. Are any of them compelling enough to buy?
Thank you.
5i Research Answer:
One could point to FFH easily; even with a 52% gain this year its stock trades at only 5X earnings. CROX is one we would also suggest, at 8X. BNS at 8X. SMCI is more volatile than the ones listed above, but is growing very fast and is 14X earnings. We would be fine buying any of these.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in SMCI, CROX.