Q: your opinion on BOS
thank you
thank you
5i Research Answer:
BOS has been a horrible performer, after its big Covid-related run. It was unable to replace very large expiring contracts and is now losing money. It is expected to show a profit in 2024. But debt has surged, going from $74M pre-covid to $128M now. Debt is more than 5X cash flow. It missed estimates last quarter and is likely to see some tax loss selling (down 46% for the year). It is still paying its (10.6%) dividend but this money we think should go to debt repayment to reduce risk. We do not find it attractive right now and far too risky.