Q: I purchased DND back when it was in your portfolio, you have since dropped it, I still hold a small share. What is your opinion now with the two recent acquisitions and Engine Capital (approx 7% owner) not overly pleased.
Thank you
Jim
Thank you
Jim
5i Research Answer:
We think the company is taking the appropriate steps, but debt remains our biggest concern here. The activist fight is getting ugly, but we are OK with this. Management has made some poor moves and needs to be watched. The company could be poised to do better when real estate picks up, but it has lost money for the past three years. We would still not give it a strong endorsement.