Q: I know they missed on the qtr, but wow, what a reaction! Is this overdone? Does is feel like a good opportunity to get into a generally pretty awesome company?
5i Research Answer:
It was certainly a bad quarter for SJ with a large miss on earnings and revenue. While the utility pole demand slowing was not positive as we saw this as a previous catalyst, it could be a temporary issue. SJ does have solid fundamental and it is now trading at just 13x forward earnings. There may not be a near term catalyst for it, but we do think this could be getting to an attractive entry point with any further drawdowns.