Q: What would the reason be for the big pull back drop in the stock?
Would you recommend to stay with it sell it or buy more?
I realize valuation a lot better with the drop but at such a low valuation and still dropping does the market know something not apparent?
Would you recommend to stay with it sell it or buy more?
I realize valuation a lot better with the drop but at such a low valuation and still dropping does the market know something not apparent?
5i Research Answer:
SHLE is a small company up 83% this year; it is going to be inherently volatile. The drop on May 10 was after earnings, which were fine. Sometimes investors 'sell on news' and certainly profit-taking can occur anytime after big gains. There was no other specific news. We cannot comment on position sizes, but nothing has really changed here. It is very cheap, but highly leveraged. We would be fine holding an existing position but would prefer a small weighting; there are risks here.