Has TFII found a bottom after their latest earnings report and subsequent reversal of their relocation of head office or will an announcement on tariffs cause a further drop? Are they still considered investable over the next 5 years? Would you buy this dip in share price?
Would you consider NBIS a buy at their current price? Where would you place them on the risk scale (10 being highest) over the next 5 years?
Always appreciate your advice.
Dan
We can't really call a bottom as the market backdrop could still take things down further. The outlook commentary is not likely to attract a lot of new buyers in this backdrop. However, we are confident TFII gets through this downturn. It may get active with M&A to set itself up for the next cycle. We would be fine holding it but we think new buying can wait a bit. On NBIS, It's up 15% YTD. Fundamentals are good, and the company has lots of cash and very good growth prospects. Volatility has massively increased with market concerns (tariffs, Trump, inflation) but we would not consider it a SELL based on its prospects and valuation. But we would suggest at least a two year timeframe. It is not risk free, and the tech market is certainly rolling over. We can't time a bounce here but generally fundamentals will win the day, if given enough time. We are confident in the fundamentals but a bit less so in the short term market direction. On risk we would give it a 7.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NBIS.