ONEX (TSX:ONEX) is another widely-misunderstood investment manager caught skating offside when the COVID crisis hit. Having scooped up an airline in WestJet before the pandemic, ONEX was one of many firms that were blindsided by the black swan event and shares have been punished severely in recent months.
On Wednesday, shares of ONEX went from oversold to severely oversold, with the name plummeting over 4.4% in a single session. The stock is now off over 45% from its all-time highs and looks to be headed back towards its March depths. While it’s easy to give up on ONEX now that it’s back on the retreat given its exposure to this crisis, I’d urge investors to stay the course and look to add while shares sport north of a 30% discount to their book value.
ONEX is still a terrific investment manager with a history of beating the TSX Index. As we emerge from this pandemic, ONEX is likely to be one of the firms leading the upward charge.
No comments:
Post a Comment