Q: I currently have small positions in both of the above and want to consolidate. Which do you suggest I sell to buy the other. I have gains on both but taxes not a factor. Longer term investor here, just don't want small positions.
5i Research Answer:
We don’t think there is any overlap between the two. LMN is a serial operator in the early days, we would consider it to be an early version of CSU. On the other hand, HPS.A is an interesting industrial compounder with solid organic growth over the years and yet still trade reasonable. Both are among our favourite names and we are comfortable holding both for the long term. That said, if we HAVE TO pick, we may side with LMN due to CSU’s high ownership, guidance and LMN's inherent M&A strategy. It is also significantly larger.