Q: Hello,
I have a large loss - now small position - in NFI. Is it a good time to move on? Even if it moves significantly higher it does not really impacts my overall portfolio. Thank you for your service.
I have a large loss - now small position - in NFI. Is it a good time to move on? Even if it moves significantly higher it does not really impacts my overall portfolio. Thank you for your service.
5i Research Answer:
Debt continues to be a large deterrent for NFI, however, recent quarterly results were positive and the company's back log is very large. The stock trades at 40x forward-earnings but is cheap on a forward-sales basis at 0.4x. We think NFI is risky and with the recent jump it has had, if an investor was planning on letting go of it, we think now could be an opportunistic time. It is not a buy and hold stock.