Q: Your thoughts on ACQ. Buy, sell or hold?
5i Research Answer:
ACQ is cheap at 10X earnings, but has a volatile history and lots of debt. EPS forecasts are very strong, but we think with stretched consumers and still-high interest rates the outlook is not spectacular here at all. The company is fairly small and the stock is down 14% YTD. We would consider it a HOLD, but also a source of cash for other ideas. We would not expect too much from it in the next 18 months or so.