Q: Hi, Propel stock chart looks horrible and stock can't seem to find support. Stock is now down 25% after the earnings release ( $29.89 to $22.40), after a strong quarter.
Mr Jason Donville commented in a recent interview that they were buying the stock at $6-$7 level, last year and they have been sellers for past few months, as stock has become expensive. This could also be true with many other early investors.
Propel has a market cap of $750 mln and is still relatively small cap. Do you believe that its multiple could grow, despite its size/sector risks and stock could trade higher ?
What is your advice for an investor who bought in at $22-$25 level ?
Thank You
Mr Jason Donville commented in a recent interview that they were buying the stock at $6-$7 level, last year and they have been sellers for past few months, as stock has become expensive. This could also be true with many other early investors.
Propel has a market cap of $750 mln and is still relatively small cap. Do you believe that its multiple could grow, despite its size/sector risks and stock could trade higher ?
What is your advice for an investor who bought in at $22-$25 level ?
Thank You
5i Research Answer:
We have additional comments posted today; We think it could certainly see a multiple increase. Not to 20X, but maybe 14X, which would still be a big move. A buyer at $22 to $25 likely has held for less than a month, so we would first exercise patience. There has been no negative news, just a recent negative market. Mr. Donville's comments also likely brought out some sellers and profit-takers.