Q: Hi 5i,
With the drop today Boyd is down approx -30%. The 2021/2022 pullback was approx -50% and represented a great buying opportunity for the stock.
How do you view the drawdown and operational issues today relative to the 2021/2022 volatility?
Thank you!
With the drop today Boyd is down approx -30%. The 2021/2022 pullback was approx -50% and represented a great buying opportunity for the stock.
How do you view the drawdown and operational issues today relative to the 2021/2022 volatility?
Thank you!
5i Research Answer:
2021 was related to Covid (less driving) and labour and parts issues. This time around it seems more related to weather and the fact that the company overspent last year when things were looking much better. So, while this round seems more like the company's 'fault' it should be a relatively easy fix to get its costs back in line (simply by not aggressively expanding). So the stock could still weaken further, but BYD has missed before and its 15 year record is exceptional, so we would certainly not rule out a recovery here.