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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Given the thesis's that has recently been discussed in Seeking Alpha and in the Globe, as well as NFI's high market share/strong relationships, and the guidance provided in today's Investor Presentation, I would think that the stock has the potential to rise greater than the 52 week high of $33.94 in the near future. The main driver is the move to Zero Emission Buses (ZEB), in part aided by infrastructure spending/subsidies, from traditional buses.

NFI had been trading at $59.00 in February of 2018. At that time the Fiscal 2017 Performance was Revenue: US $2.38B, Adjusted EBITDA: US $318.0M and Return on Sales: 13.4%. That was prior to their acquiring Alexander Dennis.

NFI had their "Virtual Investor Day" this morning; which would have been a greater catalyst than the Seeking Alpha article. I watched the investor day video
https://www.nfigroup.com/investor-relations/investor-day-2021/ this evening, during which NFI:
- reaffirmed its financial guidance for 2020, including Adjusted EBITDA of $145 million to $155 million;
- announced its financial guidance for 2021, including Adjusted EBITDA range of $220 million to $240 million, representing a potential improvement of over 50% from 2020 expectations; and
- announced longer-term targets for 2025, including Adjusted EBITDA of $400 million to $450 million and a Return on Invested Capital ("ROIC") target above 12%.

Given the above, as well as the state of today's markets as it relates to renewables and EV's do you think that we might see NFI trading at or near $60 in the next year?

Thanks for the great work you do!!!

Cory
Read Answer Asked by Cory on January 12, 2021
Q: Hi folks, waited for tax loss season and bought full position in Knight for my TFSA . What significance, if any, does..."Signed a new exclusive distribution agreement with Gilead for the continued commercialization of AmBisome in Brazil, effective Jan. 1, 2021.", have for Knight. The potentials with Knight seem pretty good...even if they work at a snail's pace. Overall opinion on company into 2021. Thanks as always, jb Piedmont QC
Read Answer Asked by John on January 11, 2021
Q: The other day under the CSU newsfeed and story came out about the subsidiary Harris bulking up. Maybe because of Topicus I am paying more attention but: Is this a way for CSU to indicate a further potential spinout? I was thinking of selling some CSU (for reasons you suggested others were earlier today) but then again (if reasoned true) this seems an extraordinary opportunity to let them engineer further upside for the stock owner. Is this a reasonable position to take?
Read Answer Asked by Gerald on January 08, 2021
Q: Hi 5i Team - Could you provide some fundamentals for Xebec Absorption including P/E, cash on hand and cash flow, debt, insider ownership and anything else you think is particularly important. The stock has risen so quickly that I am not sure whether the fundamentals justify it or it has simply become a 'must own' stock for investors. Do you feel the growth potential is still there. I am having some difficulty trying to decide if I should sell a portion of my holdings or hold on for a longer term.
Thanks.
Read Answer Asked by Rob on January 08, 2021