Q: Peter and His Wonder Team
It looks like they just made a good acquisition. In the past it was a $68.00 stock now trading at $15.00. Please give your assessment and does it look like a reasonable buy? Thanks as always for your help!
It looks like they just made a good acquisition. In the past it was a $68.00 stock now trading at $15.00. Please give your assessment and does it look like a reasonable buy? Thanks as always for your help!
5i Research Answer:
Recent earnings showed an improvement and its upcoming earnings this week will demonstrate if it can continue to execute. It is a small name ($1.0B market cap), with fluctuating sales growth, but a small positive profit margin. It is free cash flow positive and has been buying back shares, and it trades at a decent valuation of 14X forward earnings. After its earnings report tomorrow, we can gain a better sense of management's continued execution, but recent newsflow has been positive.