Q: Could provide any insight into why SVI has dropped hard in the last six weeks, down approximately 24%. Is this a buying opportunity or a falling knife?
Thank you, Mike
Thank you, Mike
5i Research Answer:
In late October SVI did miss estimates, and then saw some broker downgrades. It then made two acquisitions ($10.5M) in early November but there has been no other news of any note. We think it is an OK company but it has a very significant debt load, so we think buyers have some time here to wait.