Q: Tapping into your experience and expertise. TFII is down $31 at this moment. Over the next week or so, how low do you think it might go? And then over the next few months, what type of movement might it have? I'm sure it will recover some. So what price is good to buy a few shares? I realize there are many factors at work but if you were looking at TFII for yourself, what would you do?
5i Research Answer:
We would expect it to flat line a bit and then slowly work its way a bit higher. Much is going to depend though on tariff news and inflation reports. The company seems to be hunkering down a bit in preparation for a slowdown so we would not expect miracles here. We might see a drift to $135 and then a slow build to $150, assuming no negative news or market events. We think long term buyers will come in at some point, buying for the 'next' cycle. We would think $135 would be a good price for long term buyers. It might not get there, but we think in the short term not much is going to happen on the positive side to entice buyers.