TFII, Hold or sell

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I’ve had a good run with TFII and made 40% gains in a short time, but now wondering if I should hold or sell. RBC values it at 76 and therefore is overvalued. It also has and “Very strong bearish short term sentiment”. I know there was a deal struck with UPS witch sent the stock soaring in one day not too long ago and wondering is this just hype, and therefore maybe cut and run. The main reason is I want to switch it with XEBEC and maybe also Good natured food.

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Asked on February 18, 2021 5:40 am
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Yeah, that isn't out of the question. I mean most analysts have $110+ price targets on this company.

TFII remains attractively valued in my eyes. I plan to keep my position.

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Posted by Dan Kent
Answered on February 18, 2021 11:56 am
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Cutting TFII is completely up to you. We like the company. I own a 7% position in them with an average price in the high $30's and have zero intentions to sell. But depending on your overall portfolio makeup, it could be a different situation.

As an example, I did trim. At one point, it made up 15% of my portfolio because of the run it has been on.

I'd be very cautious using stuff like analyst estimates and sentiment indicators to make long term investment decisions. For example, RBC has a target price of $76, which is likely an old estimate from prior to the acquisition, while our YCharts system has a target estimate of $104.83.

Maybe if you're hesitant about TFII being overvalued, may be good to set a stop limit?

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Posted by Dan Kent
Answered on February 18, 2021 7:54 am
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