Q: Please provide your outlook for CHR. I have been in it since it was paying a decent dividend and have held on to my detriment since COVID. Is there any hope or should I cut the cord.
5i Research Answer:
The stock is very cheap, but its small size, negative momentum, VERY high debt and low (i.e. none) earnings growth make it uninteresting to us. Estimates have been declining and it missed its last quarter EPS estimates by a very wide margin. AC owns 8% and there is always a chance of a privatization or takeover, but we do not like owning a stock JUST for that possibility. We think investors can move on here to greener pastures. Forecasted EPS this year is far less than it was more than a decade ago.