RE:Big drop No comment on the big drop but on last Friday's Market Call guest Norman Levine (who generally seems fairly conservative) selected UNS as a top choice. Of course, I don't know whether the latest news would change his opinion or just cause him to wish he'd bought a week later.
https://www.bnn.ca/video/norman-levine-s-top-picks~1328425
"Purchased on Feb. 13 at $26.08.
Uni-Select is a wholesale distributor of automotive aftermarket parts and paints. It has leading market positions in its three key markets: Canadian and U.K. aftermarket auto parts and U.S. collision paint repair.
The stock had a great start to 2017, but then suffered from two events. First, it’s suffered from a transition away from one if its major paint suppliers in the U.S. Second, its paint operations were widely affected by the hurricanes in Florida and Texas. Investors have also been fretting about Amazon becoming a factor in aftermarket auto parts. For Uni-Select that fear is misplaced, as it sells exclusively to auto repair shops, where broad inventory and speedy delivery are paramount, as opposed to do-it-yourselfers, who are Amazon’s customers. Investors have also questioned its U.K. acquisition, as its margins have suffered lately. This has provided an opportunity and we believe that margin expansion through operational improvements will be the key to this stock’s success.
It has a 1.4-per-cent yield. Due to the debt it incurred (which it hopes to repay quickly) in its U.K. acquisition, this stock is not suitable for very conservative investors"