Q: Do you think FCD-UN stock price will go up or down in the next 6 months, and why do you think that?
5i Research Answer:
FCD is a REIT, and as such it is primarily an income investment (10.1% yield). The company is quite small ($190M market cap) and small caps continue to struggle in this market. It is cheap at 10X cash flow, and is up 6.7% this year. As rates come down in Canada, it should see some benefit. We would thus expect a small uptick (maybe < 5%) in the time frame noted.