RE:RE:RE:Ratings and Price TargetsI agree the market has struggled with Chorus - evidenced by an average 14% yield over the last 6 years. That said - if you look at the 5 year price chart - evertime the company hit an all time low - it rebounded nicely - the negative sentiment was not systemic but temporary. To a post I made a few weeks ago - there is no truly new news with Chorus - all the uncertainty plaguing this company has been there from the beginning. Prior to the Q1 report (EPS miss and dividend cut) - the sentiment was not nearly as negative as it is at the moment. The stock reached highs of $4+ per share. The tough part for investors is taking the emotion out of the investment - especially if you had bought in at the $3.8 to $4.00 level. If you are buying in at the $2.00 level - there is a very strong potential for significant upside.
Time will tell if a positive Q2 moves the price - I think there are a lot of upside catalysts be it a strong Q2 or next dividend run-up in October.
The market just seems a bit irrational to me how much the stock had been punished by an EPS miss and dividend cut (the only true pieces of new news that was announced at Q1). The market has driven the stock to a price point that makes the risk reward attractive - even if it moves up to the previous $2.33 during the last dividend announcement - there is money to be made at current prices.
As for no institutional or fund ownership - sure - Fairfax is gone but there are pockets of fund and institutional ownership assuming Morningstar.ca is relatively up to date....
Will close with an extension of the Charline Munger quote....
We look for a horse with one chance in two of winning and which pays you three to one.....you are looking for a mispriced gamble. That’s what investing is. You have to know enough to know whether the gamble is mispriced. That’s value investing.....
Best of luck to all...