Q: Hello 5i Team
Today BDT jumped approximately 12% on news that they are increasing the dividend.
Do you believe that it is okay to buy this stock after the big run up or to wait? Is the stock a good company with a long term investment.Would you recommend this company or another company in the same space?
Thank you
Today BDT jumped approximately 12% on news that they are increasing the dividend.
Do you believe that it is okay to buy this stock after the big run up or to wait? Is the stock a good company with a long term investment.Would you recommend this company or another company in the same space?
Thank you
5i Research Answer:
The dividend bump was significant and is a bit of a statement by the company. The stock has doubled in the past year and is now 15X earnings. Market cap is now firmly above $1B ($1.6B) which can generate new interest. Earnings forecasts are solid. It can be cyclical, and has had annual losses at times in the past. But it is clearly on a roll right now, and we would be OK with buying a small position. We might start at a half position after its big gains. We would still prefer WSP but being much larger may see slower growth (but we would view as less risky).