Q: What are your thoughts on Converge's latest quarter? I've held this stock for a long time looking for a win but somehow it always seems to disappoint me. Is it time to move on?
Does it have a significant enough market share that its comments that their data center work has been delayed and cyber security work has doubled that these comments could be a leading indicator to sell data center related stocks and buy cyber security stocks. If so, what stocks would you sell and/or buy? I've not bought into cyber security stocks yet but this information might be the trigger for me. Thanks!
Does it have a significant enough market share that its comments that their data center work has been delayed and cyber security work has doubled that these comments could be a leading indicator to sell data center related stocks and buy cyber security stocks. If so, what stocks would you sell and/or buy? I've not bought into cyber security stocks yet but this information might be the trigger for me. Thanks!
5i Research Answer:
Preliminary revenue was $630M, vs $648M estimates. and EBITDA w$31.2M vs $44.4M expected. The decline in expected EBITDA is quite concerning, as is the company's comments about delayed orders. The decline is likely appropriate here, as the company continually finds ways to mess up. With other data centre and cyber companies reporting good growth, and AI in general still robust, we would not take CTS's numbers as a canary in the coal mine for the sectors in general.