Exchange Income Corp T.EIF

What's with the SP?

[retiredcf]

What do you think is the primary reason why EIF is having such trouble getting any kind of traction? Their recent earnings were solid and well received by investment firms, many of whom raised their targets (eg. TD, RBC, Canaccord, Raymond James, ATB). And yet within a couple of days, the stock price has reversed itself and is now back down below $48.00.

It is hard to say; It is up 7.5% YTD, and still ahead of the TSX, even without its nice dividend. It has been attacked by short sellers in the past, and some investors view the business as cyclical. As an income stock, it has less capital for growth, and some investors are likely using it as a source of cash for more exciting sectors (i.e AI/tech). It raised its dividend in November. The stock is up about 125% in the past decade, and we would not really see much concern here. It is a solid income stock, and might do better as rates fall. (5iResearch)

[milo12]

I believe it is a second half/2025 story as the new medical contracts will take time to contribute. Solid hold.

[dwitzany]

Thanks for reproducing 5iResearch here, though I am also a subscriber there; they are the best! I'll give you two reasons that they are down. 1.  Like any equity with a yield north of 5%, their sp is down while there are risk-free options that pay a similar return 2.  The investments in new capital and new long-term contracts are a short-term drag on EPS and similar metrics.