- TerraVest Industries Inc. (TVK)
- Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
Q: Hi, These two stocks are off their recent lows but still trading significantly below their 52 week highs. Based on your comments, their valuations are still attractive compared to the historic average and their peers. Are there any near term catalysts, in your view, which could propel the stocks higher, back to their glory ?
Thank You
Thank You
5i Research Answer:
The next earnings results for both companies will be crucial, particularly for HPS.A. Investors will be looking at the stock-based compensation for HPS.A, and how its profit margins may have shifted given the recent stock decline and the impact that may have on adjustments to SBC.
TVK saw a consolidation period recently after it announced share issuance in early May, We feel it may need some time to find support here, but its upcoming earnings can also act as a potential catalyst. Announcement of acquisitions can also help TVK's share price.