Q: Dou think this is agood entry point for Stella Jones? What is your opinion of the stock> Thanks
5i Research Answer:
We still like SJ and thin they are a high quality company that does a good job of growing their earnings and paying dividends. The stock has done poorly over the past year, due to lack of excitement around the name and the recent issues with utility pole demand. The utility pole issue could be temporary but there may not be a significant near-term growth catalyst for it. It has started to bounce a bit but we think any further drawdowns below $69 would present an attractive entry point.