Topic: How To Invest

Q: Hi Pat, what is your opinion on Exco (XTC). Is it a buy, sell or hold?

Article Excerpt

A: Exco Technologies Ltd., $9.41, symbol XTC on Toronto (Shares outstanding: 42.4 million; Market cap: $402.9 million; www.excocorp.com), operates in two segments: Automotive Solutions, and Casting and Extrusion. Exco’s Automotive Solutions business designs and makes plastic trays and blow-moulded cargo organizers for automobiles. It also offers storage and restraint systems, injection-moulded consoles and gearshift boots. In addition, it cuts and sews seat covers and headrests and makes instrument panels, sun visors and door panels. The Automotive Solutions segment accounted for 69% of Exco’s revenue in 2017. The Casting and Extrusion business designs and makes diecast and extrusion tools as well as parts for aluminum diecasting and extrusion machines. This business segment also gives production and technical advice to extruders and manufacturers working with diecast forms. The customers for its Exco business are mainly automakers, but include industrial firms. The Casting and Extrusion business accounted for 31% of the company’s overall sales in 2017. Based in Markham, Ontario, Exco was founded in 1952. Its revenue…