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North West Company Inc. (The) (NWC)
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Exchange Income Corporation (EIF)
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Diversified Royalty Corp. (DIV)
Could you please give me your outlook for these three companies in this new age of orange uncertainty? The headwinds and any growth opportunities.
Thanks for the Great Service!
EIF: has a diverse set of business, with only about 25% US exposure. Some of its businesses (airlines) are essentially regional monopolies. It is down this year but we would consider it a decent buy today.
NWC: Does not have a material exposure to the US and also has some strong market share in some of its regions. The balance sheet is fine and decent EPS growth is expected. It is priced well with a decent dividend and we would consider it a relatively conservative small cap buy at this time.
DIV: is much smaller and has a higher yield. Economic (consumer spending) is likely its biggest current concern. Debt is fairly high and growth fairly low since it pays out so much income. We would consider it a bit riskier today that usual.