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

Industrials Airlines

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

Exchange Income Corp

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Comment by TraderBenon Nov 07, 2017 6:47am

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Post# 26916402

RE:RE:Daniel Lloyd

MrSiIbergleit wrote:

grinder1 wrote:

(A Top Pick March 14/17. Up 9%.) *Short* A small manufacturer and aviation company. The aviation side of the business is far more important to them. They operate several regional airlines that service northern Canada, as well as the east coast. They also have an aircraft leasing business, Regional1 in the US. His issue is very much around their allocation of capital and that they spend their cash flow in a very dramatic way. CapX is greater than their operational cash flow, plus they have debt, plus they pay a dividend. Not a sustainable way to run a business.

Daniel Lloyd
Founder & Portfolio Manager, Sui Generis Investment Partners

1

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1 Comment

Ken

May 3rd 2017 at 12:33pm

Several problems with Daniel Lloyd's comments:
a) because CapEx is bigger than income, you can't pay a dividend? Not so. For example, if I spend a million dollars on CapEx (buy some houses, or a plane, or a car rental company, or some farm land ...take your pick) and then I make $250,000 in income off of that business, you are going to tell me not to pay myself a dividend? Poppycock. (BTW, that's the exact ratio of CapEx to profit that EIF has .... 1:.25)
b) Daniel Lloyd would sell shares into the market now ... at $35/share. Note that EIF sold shares into the market at $42.45/share. Who is the smart one here? (Maybe EIF should institute a share buy back at these prices. They would make $7/share ... considerably better than Daniel Lloyd who is already down on his initial short)
c) Mr. Lloyd complains that they issue too many shares. Get a grip. I own a raft of REITs. Just about every one has issued shares and used it for capex. I don't see you issuing shorts on them.

Who is Daniel Lloyd and why should anyone care?

I agree re point a) .... if anyone used Daniel Lloyd's logic no one would have bought Amazon for the last 10 years.

Mr.S, Daniel Lloyd will survive so you shouldn't care. Cohodes on the other hand, will make all his fan boys broke (you being his #1 groupie). He had to be the only guy in 2008 that had a short fund that went titts up. How was that even possible?

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