Q: Hi 5i,
With the recent jump up in stock price for Lumine, would you expect some price consolidation for a while due to the size of the recent acquisition? Or, after this large purchase, are they still able to carry on with business as usual?
With the recent jump up in stock price for Lumine, would you expect some price consolidation for a while due to the size of the recent acquisition? Or, after this large purchase, are they still able to carry on with business as usual?
5i Research Answer:
The recent run-up in price has been impressive, and we might see some slight consolidation as investors take some profits here, but largely we feel that the company has more upside potential in the coming year. Although the recent acquisition was large, we believe it has the capacity to continue making acquisitions throughout the year, and accelerate its growth rates even further. Its debt levels are still reasonable, and it has a healthy balance sheet. We expect the company to continue surprising investors with its strength in management and execution.