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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: Could you please list a few companies you believe to be somewhat similar to MRS in terms of the business they are in? I'm tying to get a better understanding on their numbers, and would like some comparables. Also, what do you think is a realistic % for their long term profit margin targets? Thanks
Marc
Read Answer Asked by Marc on May 11, 2021
Q: hello 5i Research team, BOS : I know you have been disappointed by this one. Could you comment on the “new valuation” of BOS since THE contract was announced? Is this new valuation only valide while THE contract is being worked-on and that there is a higher level of hope that more contracts will follow due to COVID? How optimistic are you about additional such sizeable follow-up contracts from the US government or other foreign governments, especially since last year’s merger? Are the cash flows generated by THE contract enough to reduce significantly the debt level to induce higher multiples? What maximum weight would you give it in a diversified portfolio? What other Canadian companies offer a similar risk/return profil? Thank you for your collaboration, Eric
Read Answer Asked by Eric on July 07, 2020
Q: Thought your subscribers should know that yesterday, TD made a significant upgrade to their target for BOS (from $18 to $25). Their rationale was as follows:" We believe that opportunities related to the COVID-19 pandemic and recently created AirBoss Defense Group subsidiary are not currently factored into the AirBoss share price."

And their potential upside scenario is much more optimistic. "Should AirBoss' Rubber Solutions segment trade in line with its Hexpol comparable, and its Defense Group subsidiary achieve our upside scenario revenue in 2023 while trading at 10.0x forward EBITDA, we believe that the stock could be valued at $50.00- $55.00/share by the end of 2022. Considering this upside supports our view that the current share price undervalues the long-term potential opportunity."

Keep up the great work.
Read Answer Asked by karl on June 18, 2020
Q: My Canadian dividend portfolio lacks exposure to materials. I currently hold CCL.B and was considering adding one position in SJ, NTR, or BOS. My goal is owning a good business at a sound valuation with prospects of dividend growth for at a long term. I consider the companies the best in the Canadian universer of stocks when it comes to materials. I am leaning towards NTR, but I am hesitant because I try not to invest in businesses that are very sensitive to commodities prices. Can you comment on these companies, their management, risks, and outlook? What do you think is the best option among the three?
Read Answer Asked by Steve on May 26, 2020
Q: Thank you for May 5th report. # 3 states that this may be an opportunity to trim some names that have rallied significantly to reposition into a more conservative large cap portfolio. Could you give some examples of companies that would fall into those categories?
Read Answer Asked by Lorraine on May 07, 2020
Q: Hi 5i research team,
In your recent report update on BOS, you mentioned the need for a catalyst as their house is pretty much in order (balance sheet, operating systems, management). I am wondering what it could be? #1 Revenue growth: BOS only made few acquisitions in the past 20 years, so it would be a surprise; and in the current state of world growth (probably slightly decreasing at best), BOS would need to enter a new related line (from their current activities) of business: any ideas? #2 Dividend growth and share buybacks: what size of increase or program would be needed to represent a catalyst? When would the balance sheet be ready (size of debt?) for such moves? #3 Privatization of the company: insiders own 41%: looking at insiders could they be buyers or sellers? Do you see this possibility in the next 5 years? #4 Could BOS be on its way to become a value trap? Thank you for your collaboration, Eric
Read Answer Asked by Eric on November 05, 2018
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