Q: TFII has dropped big time over the past few days since earnings came out. Was part of the drop related to their initial announcement to relocate headquarters to the US? Late yesterday, TFII said the move was off. Do you think the drop will stop and maybe reverse itself with this news? I didn't understand the rationale in their initial announcement as anything I read said they would probably benefit by getting increased freight flows as a result of tariffs and what Trump is doing to the States.
5i Research Answer:
We have posted comments on the US move/cancel in today's Q&A. But we do not think it was a big factor in the decline: earnings were simply horrible and the company did sound pessimistic. It may flat line a bit but with markets selling off in general we would not expect a miracle recovery here.