Exchange Income Corp T.EIF

Analyst Recommendation

[retiredcf]

BUY ON WEAKNESS

Exchange Income(EIF-T)

02/01/2024
 

An historic compounder that pays a good dividend. They buy businesses, invest in them and grow them organically. Done very well this way but shares have sold off and haven't recovered as he expected. Maybe their deals with airlines are a factor. Fine managers for over 20 years.

Transportation & Environmental Services

Bruce Campbell 2

$45.285

Owned

[Eastbank]

Stock is not getting any love and share price is close to 52 week low, despite STRONG BUY recommendations by analysts with average TP of $62. Business is largely misunderstood albeit segmented operations are solid and profitable. Perhaps short sellers active today with price of oil/fuel on the rise. Time for a turnaround here! GLTA

[Niceneasydoesit]

Agreed on most of what you said. Turn around needs a catalyst, like an earnings update or an investor day, etc. However, while it's indeed disappointing, I'm not at all concerned about the company . Keep clipping that divi.

[dwitzany]

They diluted (issued) shares to buy the planes needed to take on two, new medevacs contracts which will be profitable and accretive to earnings.  However, in the short term, their per share earnings (GAAP and non-GAAP) drop, but I love this investment because it IS accretive and largely insulated from secular economic cycles.

[dwitzany]

If you noticed, Andrew Pink basically said the exact same thing the next day on Market Call!