Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Just wondering if you have any future plans for selling/holding EML? You have a decent amount of it in your Emerging companies portfolio at an 80% loss. I thought you guys possibly would have sold it at some point on the way down with all the negative updates as you do with other stocks.
Hi Scott,
EML has been a difficult position for some time given the weakness in the payments space coupled with regulatory issues with the Central Bank of Ireland. We have ben extremely disappointed with the decisions made by management, not limited to the rejection of a takeover offer last year at a significant premium to the current share price.
There has been management and board turnover as a result since with many shareholders frustrated with the actions taken. The company is currently conducting a strategic review of assets which will likely lead to the sale of some business segments, if not the whole company. We clearly should have cut our position sooner, and this is one of the lessens we have learnt this year in the smaller companies space, however, given the small size of the position in the portfolio taking into consideration the capital loss, we think it’s best to hold it and see how this review unfolds.
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