Q: I just noticed (better late than never) that you sold your full position in Stantec in your model GROWTH portfolio in February. How come? Any concerns with the company?
5i Research Answer:
We continue to like STN, but at the time we felt its valuation was lofty relative to its historical averages, and we were looking for higher growth opportunities elsewhere. We think it is a solid moderate growth name, and for a long-term investor, we would be comfortable holding it over the long term. It can go down along with the market if we continue to see declines for the TSX, but it has a strong history of margin expansion, revenue growth, and free cash flow growth.