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  5. HPS.A: What seems to be causing the volatility in the stock, post earnings ? [Hammond Power Solutions Inc. Class A Subordinate Voting Shares]
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Q: What seems to be causing the volatility in the stock, post earnings ? It was supposedly a solid quarter and SPA issues appear to have been put to rest.

Thank You
Asked by rajeev on July 30, 2024
5i Research Answer:

Every trade has an opposing view. Some analysts are saying its earnings growth is lagging its share price gains. There will always be profit-takers after an 86% one-year gain. Some say it is lagging sector growth. But EPS has grown fairly steadily since 2018, the balance sheet is fine, the dividend has grown and the recent quarter was solid. It is still a relatively small unknown company and volatility is the price investors have to pay for small caps, at times.