Q: I have held BYD since 2013. I paid $18.32 and never considered selling.
Can you explain why it now behaves in such an erratic manner ?
Is it a sell?
Can you explain why it now behaves in such an erratic manner ?
Is it a sell?
5i Research Answer:
There is no news on BYD, earnings results are August 8th. It trades at a premium valuation of 37X forward earnings, and so there is room for multiple contraction, which can help explain some of the volatility recently. We consider BYD one of the higher quality names in the TSX, and it does have some near-term headwinds, but largely we do not feel the story has changed.
Over the past 10 years its total return CAGR has been 20%, over the past five years, 9.7%, and the past three years 5.4%. Its recent momentum is not great, and we could see lower prices in the near-term, but for a long-term hold we would be quite comfortable holding this name.