Q: I don't have too many names I want to sell, but lots of names I'd like to buy....
One move I would consider would be to sell CTS to invest in either TMX or ATS. My question is besides the different sectors, long-term which company has the most potential to outperform the others? I'm guessing in order of growth potential it would go CTS, ATS, TMX, with the risk profiles the exact opposite?
Do you see enough potential in CTS to hold it over the other two names? Thanks in advance. - Jeff
One move I would consider would be to sell CTS to invest in either TMX or ATS. My question is besides the different sectors, long-term which company has the most potential to outperform the others? I'm guessing in order of growth potential it would go CTS, ATS, TMX, with the risk profiles the exact opposite?
Do you see enough potential in CTS to hold it over the other two names? Thanks in advance. - Jeff
5i Research Answer:
We would agree with the order of growth potential. CTS has the added advantage of being the smallest, so its leverage to deals/earnings is larger. X remains the safest with its quasi-monopoly and no need for much capital. ATS's monentum has shifted. Unless one wants to emphasize more safety, we would probably stick with CTS here.