In Q2-2024, LMN’s organic growth was weak -12%, much larger than the previous quarter of only -3%. The significant negative organic growth in the most recent quarter certainly made some investors worried about the execution at LMN, and whether the execution of the acquisition strategy at LMN is on par with CSU.
Management explains the reasons for negative organic growth were due to the recent acquisitions that are going through integration and onboarding, which leads to a reduction in organic growth, as LMN re-evaluates certain contracts and projects. We are okay to add some here but not too aggressively, until the stock shows better momentum or we see a stabilization of organic growth, then would be more confident to average into the position.