Q: Hello; Could you please provide some insight on ECN, I own the
stock, is it a buy, sell or old.
Thanks for your great service.
stock, is it a buy, sell or old.
Thanks for your great service.
5i Research Answer:
ECN is highly sensitive to rates and the economy, and we think it can see improvement as rates continue to drop, but it is small and there are high inherent risks. In late May, we sold the full ECN position in the Growth Model Portfolio as even though long-term we feel there is value in the name, it has been under pressure too long for our liking, and at we felt there were better opportunities in the market. It trades at a cheap valuation of 9X forward earnings, but sales growth is slow, and profitability is under pressure. We would be comfortable letting this one go, and would prefer a higher growth name at similar valuations such as EQB, PRL, or GSY.