Scotia on week stock price Understanding the uncharacteristically weak stock performance has likely been a somewhat perplexing and frustrating focus for investors over past months. Amid a broad equity market sell-off, EFN shares have disproportionally suffered. Over the past few months, the most topical concern for existing and prospective EFN investors has been to gain insights into and understand the drivers of the uncharacteristically weak stock performance. The concerns are dynamic, and likely combine both market influences and questions regarding fundamental factors. Further confounding, and likely amplifying the relative weakness, is what we believe to be a significant shareholder transition playing out. Based on our thoughts and conversations with investors, we explore and discuss what we see as key concerns and influences: Shareholder transition has likely been the biggest near-term influence. We believe the stock is undergoing a significant transition out of U.S. catalyst-driven investor portfolios and back into more fundamental-based investor hands. The timing lag between what we believe are likely fast money sellers back to long-term holders may have created a significant imbalance between supply and demand for the stock over the past few months, creating an overhang and accentuating the downside pressure as markets sell off. Element has been a high-growth and catalyst-rich name following a series of increasingly large transactions. We think growth and acquisitions are not over for Element, but given its current scale and focus on integration, the coming quarters are expected to be (relatively) quieter than 2014 and 2015, which saw two significant back-to-back transformational acquisitions. In that context, catalyst-driven investors with short-term investment horizons (one to two quarters) are likely better sellers than buyers. We think the transition has progressed but stock volatility and some emerging macro uncertainties have spooked skittish (and frustrated) fundamental investors.