Q: Good morning,
In the industrial holdings in my portfolio I hold SIS and WSP. I’ve held SIS for quite some time. SIS seems to be a bit stagnant so I’m thinking of replacing it with AXON for increased growth. What do you think of such a switch?
In the industrial holdings in my portfolio I hold SIS and WSP. I’ve held SIS for quite some time. SIS seems to be a bit stagnant so I’m thinking of replacing it with AXON for increased growth. What do you think of such a switch?
5i Research Answer:
We think SIS is fine and would be very comfortable holding it. That being said, AXON we think potentially offers better capital returns (no dividend). They are of course very different, but AXON has global exposure, net cash, and high growth. We would be OK with a switch as long as one understands the shift and the differences. AXON reports today so may be volatile.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AXON.