Q: What are your current thoughts on CNE? Gas prices in Columbia have increased and the political situation doesn't seem as precarious as a few years ago.
5i Research Answer:
Its location and small size add risks, but it is certainly priced well. But debt remains a concern for us, especially in an uncertain commodity environment. The political situation has settled down, somewhat. Consensus calls for very good growth this year, but it did lose money and missed estimates last quarter. We would still consider it too risky for a strong endorsement.