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Exchange Income Corp T.EIF

Alternate Symbol(s):  EIFZF | T.EIF.DB.J | T.EIF.DB.L | T.EIF.DB.M | T.EIF.DB.K

Exchange Income Corporation is a Canada-based diversified acquisition-oriented company. The Company operates through two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment is comprised of three lines of business: Essential Air Services, Aerospace, and Aircraft Sales & Leasing. Its Essential Air Services includes both fixed wing and rotary wing operations. Aerospace includes its vertically integrated aerospace offerings that provide customized and integrated special mission aircraft solutions primarily to governments across the globe. Aircraft Sales & Leasing includes aftermarket aircraft, engine and parts sales and aircraft and engine leasing, along with aircraft management services. The Manufacturing segment is comprised of three lines of business: Environmental Access Solutions, Multi-Storey Window Solutions and Precision Manufacturing & Engineering. The Company also focuses on portable hydronic (glycol-based) climate-controlled equipment.


TSX:EIF - Post by User

Bullboard Posts
Comment by griffpon Apr 18, 2014 3:05pm
323 Views
Post# 22467852

RE:This wants lower...

RE:This wants lower...

"Patience is needed..."?  A bit optimistic!  When one takes a look at the past 5 years...which qualifies as having patience in my book....this is what I see.   In the past 3 years the stock has trended downwards from the high 28$ range...to the mid 19$ range.   Granted, the shorting has increased markedly in the past year and substanially over the past 5 years but when only 4 or 5% of your market CAP is shorted, I don't think that would explain what has been happening to EIF recently.  I wouldn't dismiss a CRA charge of 10 million so easily either because those holding EIF shares don't seem to share the same opinion. Take that amount of free cash out of any company, regardless of whether they can pay it or not, when that money is rightfully the shareholders or equity that could internally fund capex, then share price reflects that concern.  When I look at the key financial stats, this is what I see.   EIF now is showing a payout ration of over 400%....a negative cash flow  with earnings per share of a quarter of what they were two years ago ... an operating income  minus 50% YoY...and a ROE and ROA of one fifth from what it was two years ago.   Maybe we have a right to be  concerned? Those that have been in EIF since 2010...are taking some profits...and others such as myself who bought in at the top....are taking a tax loss. The problem isn't the CRA...the issue is the present Board and Executive Management have lost control of financial structure of this company and the market is rightfully discounting that performance ..which includes a dividend that isn't sustainable.  EIF has only traded  above it's 200 day moving average once in the past year.  So...why should 'I' ..or anyone else....be patient?

Bullboard Posts