Q: Hi 5i,
I hold above stocks 2%, 1.5% and less than 0,5% of fortitude. Thinking of selling Fortitude to add to my now decreased position in FNV. Which do you think has more upside? If even, given recent FNV decline and lower risk, I might go for more FNV as I am becoming more conservative. I am OK to take some higher risk given Fortitude is a small position.
Your thoughts please on FNV and Fortitude and suggested strategy.
Thank you.
I hold above stocks 2%, 1.5% and less than 0,5% of fortitude. Thinking of selling Fortitude to add to my now decreased position in FNV. Which do you think has more upside? If even, given recent FNV decline and lower risk, I might go for more FNV as I am becoming more conservative. I am OK to take some higher risk given Fortitude is a small position.
Your thoughts please on FNV and Fortitude and suggested strategy.
Thank you.
5i Research Answer:
FTCO is very cheap at 10X earnings, is profitable, and has lots of cash. Yes, it is riskier being a small company, but it is certainly priced well. It also offers a high yield, supported by its cash balance. The stock is up 12% YTD. It likely has more upside potential than FNV as of today, as investors are still concerned about FNV's exposure to FM's problems in Panama. FNV is more conservative, so that should be considered. But we would be OK with FTCO at 1% to balance out the holdings a bit and add some potential faster growth.