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Premium Brands Holdings Corporation (PBH)
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Savaria Corporation (SIS)
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Exchange Income Corporation (EIF)
I know there should be brighter days ahead for both SIS and PBH, but EIF looks appealing....
We like all three names and would be comfortable holding all three. SIS is experiencing a challenge in revenue growth and PBH is in its capital investment cycle which depresses earnings and free cash flow, but oth could recover in a better macro environment.
EIF on the other hand continues to execute really well year after year and the valuation is not that expensive. EIF’s balance sheet is quite leveraged, which investors need to get comfortable with before committing as a long-term holding. We are okay to switch some SIS and PBH to EIF but would prefer diversification of all three vs two. EIF should be viewed more as an income stock overall, in our view.