Q: Why has there been a steady decine in this stock price? Is it something that should be retained or dropped?
5i Research Answer:
OTEX has been trading sideways over the past couple of years, and its recent earnings results sent the stock lower. It remains highly profitable with good free cash flow, and trades at a cheap valuation for a tech stock (8.3X forward earnings). Its low valuation makes it a HOLD, but we would not add and do not like the negative momentum here.