Q: Where would you direct some RIF investment between these two WCP or GEI. Which is safest?, which has the best upside? or hold the worst downside?
Thank you.
Thank you.
5i Research Answer:
GEI is far more expensive than WCP and has a giant debt load. Thus, we would consider WCP safer, even with its sensitivity to commodity prices. Its merger with VRN creates a larger, stronger company. In terms of upside, it is a harder call. In a market rally, investors do not care about debt so much, and GEI could do well under different circumstances. GEI has outperformed this year (by declining less). But overall, we would be more comfortable with WCP.