Q: I see you've made comments about the quarter but I have another. For a 3 to 5 year position would you be ok with averaging down? I know you don't encourage "averaging down" per se, but I guess I'm asking if you still feel optimistic about long term prospects of the company
5i Research Answer:
Not yet; in a scenario like this, with a 'miss', a possible consumer-led recession, and a stock now down going into year end, stocks will often drift lower as tax loss sales occur or fund managers exit prior to year end and frustrated investors move on to better-momentum stocks. We think it will be fine in three years, yes, but might not do much for six to eight weeks, or longer if the consumer slowdown worsens or lengthens. Thus we think any new buying can proceed slowly or into the new year.