Q: What are your views on Gildan as an investment for a 3-5 year hold?Also thinking of CAE as a turn around story.Which do you feel has the better prospects?
5i Research Answer:
With some recent activist investor involvement, and a stock price that really hasn't done much for years, we would consider CAE a decent turnaround/recovery play. It has a duopolistic position in the sector and there are high barriers to entry. It might be better in the short term, 1 to 2 years. However, we think GIL is a better overall company for the long term. It has proven itself over time and still has lots of potential So it is a bit of a tie here depending on an investors' timeframe.