Q: Retired, dividend-income investor.
I've held NWC since 2019 and have done quite well, averaging roughly 15%/yr. I have trimmed and added over the years. Late last year I trimmed at just under $50. It has since ran to $55 and corrected roughly 20% to $45...now at $47. I see it's P/E range over 5 years has been 7-35-ish, now at 17. I was thinking of topping up again. To me a good price would be $45 and a great price would be $40, even though I'd happily buy where it is now.
From a Trump tariff point of view, my research shows mostly northern Canada, plus USA, then Caribbean as it's markets....any concern here?
Your thoughts on the current valuation, my entry top-up ideas and the Trump tariff would be appreciated....thanks....Steve
I've held NWC since 2019 and have done quite well, averaging roughly 15%/yr. I have trimmed and added over the years. Late last year I trimmed at just under $50. It has since ran to $55 and corrected roughly 20% to $45...now at $47. I see it's P/E range over 5 years has been 7-35-ish, now at 17. I was thinking of topping up again. To me a good price would be $45 and a great price would be $40, even though I'd happily buy where it is now.
From a Trump tariff point of view, my research shows mostly northern Canada, plus USA, then Caribbean as it's markets....any concern here?
Your thoughts on the current valuation, my entry top-up ideas and the Trump tariff would be appreciated....thanks....Steve
5i Research Answer:
NWC should be largely protected from tariff issues due to its locations. We are not sure how much of its supply may come from the US (in case there are counter tariffs from Canada). It is approaching the lower end of its 10-year multiple average. The dividend was raised in September. The last quarter was not a blow out, but it could be seen as a 'safe' place to hide if markets go into 'risk off' mode. Because of its relatively small size we would keep it to a 'not huge' position, but we would be comfortable adding some at current levels, and would agree on the $45/$40 good/great levels.