Q: Hi, what was the reason for the 18% drop on July 11th and can you comment on if this represents a good entry point?
Thanks,
Peter
Thanks,
Peter
5i Research Answer:
CVO noted that a single shareholder of 23.7 million shares had tendered their shares to its buyback program. Only Elliott Investment Management has this many shares, though there was no announcement by Elliott. At 42%, Elliott's block could pressure the share price and certainly a sale would not be a great endorsement for a relatively small company, especially one that was down on the year even before yesterday's block-related sell off. We think the stock is interesting (comments on it from this week in the Q&A) but we would like to see this block cleared up before buying or adding.