Q: Peter and His Wonder Team
I have held this stock for years and am under water. They keep promising better times. So I am following the classical route of " just trying to get my money back". All factors considered... give it another season or throw in the towel! Ha!Ha! Thanks your professional opinion is always sobering.
I have held this stock for years and am under water. They keep promising better times. So I am following the classical route of " just trying to get my money back". All factors considered... give it another season or throw in the towel! Ha!Ha! Thanks your professional opinion is always sobering.
5i Research Answer:
The stock is very cheap at 7X earnings, and, at least, is doing better this year, up 28%. It has some debt, about 1X cash flow so not a worrying amount. It is a cyclical industry, but consensus calls for solid growth this year and next. Estimates have been rising, and the recent quarter beat estimates nicely. Insiders own 20% (with some recent sells). Overall, while its size and sector add risk, we think it has enough positive attributes to stay a hold at the current low valuation. Much will still depend on sector spending levels here, but overall we think it looks decent.