Q: Hello 5i,
Pretty sure I know your question but if BOS was a very small % of your portfolio and in a loss position within a registered account would you move on and sell this name?
Pretty sure I know your question but if BOS was a very small % of your portfolio and in a loss position within a registered account would you move on and sell this name?
5i Research Answer:
BOS has been a horrible performer after its big COVID-related run. It's a small name ($122M market cap), is expecting some small growth in sales and earnings in the next few years, but its profit margins are thin, and net debt/EBITDA is high at 3.3X. Its earnings misses, coupled with very bad momentum are troubling. We would be comfortable moving on from this name.