TFII may not be directly impacted, but its customers may very well be. For whatever reason (and tariffs haven't even hit yet) the company, in its own words, saw a 'freight recession'. Business is simply bad and it didn't respond in time. This is concerning of course because if it was bad in the Q4 we are having a hard time seeing how it can get better in the short term with all that's going on now. Basically, tariffs equal uncertainty and uncertainty means business often just stops, like a deer-in-headlights. The new valuation, the company's strong history and the dividend give us confidence in a hold call, but it takes more to turn this into a buy. Canada may be headed for recession, and the US is likely to be not nearly as strong as expected, and if job losses continue and confidence wanes, it won't be long before there is US recession talk as well. So we think buyers have some time here.
5i Research Answer: