Q: Hello 5I team: I am considering taking a 3% loss on CCO to free up funds for potentially more growth to buy HPS.A considering the recent correction.Your opinion much appreciated. Tks.Larry
5i Research Answer:
CCO operates as a uranium provider for the generation of electricity that is in the process of integrating a large acquisition. CCO operates in a cyclical industry, and has limited capital returns, and the recent acquisition also pushed the leverage level to a high level. We are okay with taking the loss in CCO to move funds to HPS.A, as we think HPS.A could have more potential to achieve solid growth going forward while still trading at a fair valuation.