Q: Good day guys .
Yet another question about this name .. I know u like names with strong momentum and certainly this is the case here at the present time .. do u expect this price action to carry on here and do u believe the stock price will fall back to the low thirties when I bought or will it continue to chug along higher with some volatility on occasion .
Thx
Mark
Yet another question about this name .. I know u like names with strong momentum and certainly this is the case here at the present time .. do u expect this price action to carry on here and do u believe the stock price will fall back to the low thirties when I bought or will it continue to chug along higher with some volatility on occasion .
Thx
Mark
5i Research Answer:
Hard to say, of course, and we are somewhat surprised it has hit a new high after not-awe-inspiring-earnings. But it is closely held, and even if one fund wants to accumulate a position it will likely move higher. Some buyers may be expecting more M&A activity next year by the company. It is not likely to go straight up, but 'low thirties' might imply a 24% drop, and while that is possible in any type of market, it is not something we would 'expect' here.