Q: ECN seems to be slowly rising from the ashes. Given that 🇨🇦 is now on a downward interest rate cycle, do you see good potential for them going forward? I know you used to think their management team was top notch.
5i Research Answer:
ECN is well off its lows, but is still down 29% for the year. We are comfortable with it for now (hold), but we do want to see better earnings growth and see positive impacts of the lower rate regime. Valuation remains good but we need to see some catalyst here to spark more investor interest. We have not given up on management, but they need to execute in the now-improved environment.