Q: I have owned AW.UN (and now AW) for years with significant capital gains and steady income. Since change of status as an income fund to a corporation it is slowly dropping. AW.UN used to follow this pattern and move back up. Anything about AW that could indicate long term sluggish performance?
Thanks.
Thanks.
5i Research Answer:
The stock is down $2 from its conversion price, but considering that market interest rates did not drop as much as Central Bank rates, we would not consider this overly significant. There has been no material news since the conversion. We would keep an eye on infation, same store sales and labour issues, but this is nothing new. We have no reason to expect long term sluggishness issues, based on the company's fairly solid historical performance within a tough sector.