Q: Hi 5i,
I imagine you might get more than a few questions about CTS this week.
I've got quite a bit tied up in it in a TFSA, and keep waiting for my loss to lessen so that I can sell less painfully and move on (as I don't have much faith in the name overall). Today's earnings make me wish I'd already done so.
Please advise what you envision for this name over the next couple of quarters, if you don't mind giving that short term view.
Thanks,
Peter
I imagine you might get more than a few questions about CTS this week.
I've got quite a bit tied up in it in a TFSA, and keep waiting for my loss to lessen so that I can sell less painfully and move on (as I don't have much faith in the name overall). Today's earnings make me wish I'd already done so.
Please advise what you envision for this name over the next couple of quarters, if you don't mind giving that short term view.
Thanks,
Peter
5i Research Answer:
We have earnings comments posted now; we doubt the stock does much for a couple of months. Then, it will depend on acquisitions and progression in improving its revenue and earnings growth rates. The stock is very cheap and lower interest rates could help in recover. The quarter was not great but that does not automatically mean its recovery story is over. Still, investors likely remember the pain of prior years so it may not do much in the interim.