Q: I have had the stocks above for long enough to watch them go up and then retreat dramatically after their last quarterly reports. Any thoughts on if taking advantage of the dip with these three is a good strategy or just hold what I have currently? All are underweight in my portfolio. Thanks.
5i Research Answer:
Keep in mind we cannot direct answers personally nor comment on position sizes. We would be OK buying some NXT here at 15X earnings. DCBO is more expensive but we think it could also be slowly added to. CELH is perhaps our favourite of this list, but the stock momentum is absolutely horrible right now and we think it would be best to let the stock settle in before chipping away on it. It has relentlessly declined on the 'same' news over two months (concern over lower inventory and market share growth slowdown).
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CELH, NXT.