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What is your outlook on EIF?
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Private answer
Hi there, We added EIF to the Dividend Bull List right before the markets cratered. At the time, we created a report which you can access here: https://www.stocktrades.ca/premium/individual-dividend-picks/exchange-income-corp-eif-to/ EIF had been trending in the right direction in terms of cash flow and debt reduction. The dividend appeared safe, and it was trading at attractive valuations. Unfortunately, COVID-19 mitigation efforts have changed everything. Although we are still long-term believers in the company, it is unclear what type of impacts these efforts will have on the company over the next few months. Same can be said of most companies at this point. On March 18th, the company updated investors on COVID-19 impacts. Through the first two months of the year, it was trending on target to meet 2020 guidance. Now, the outlook is uncertain and it pulled guidance. Although it is well diversified and it expects an uptick in demand for its medevac services, expectations for 2020 will have to be in check. That being said, the company has $800 million in liquidity which i plenty to get through the crisis. In fact, the company said it may even still look for growth opportunities. This is significant because most all corporations have put a halt on M&A. We like the company, and we believe it will do well over the long-term. Mat Marked as spam
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