Q: Looking for your thoughts on a/m; appears to be treading water in anticipation of U.S dockworkers potential strike; other than the dividend, considering selling.
5i Research Answer:
ALC is kind of a 'sleeper' stock, offering not much excitement but a low valuation and decent dividend. There is little growth, though, and 2025 estimated earnings will be below the level of 2021. It also has a fairly levered balance sheet. We have always thought it would make a good privatization candidate, but that is not enough reason to give it a strong endorsement. We would not miss it if sold.