Q: I see you keep recommending DRX but it's been a falling knife in its stock price.Why do you keep recommending this stock?
Its extremely frustrating
Its extremely frustrating
5i Research Answer:
DRX has been weak, but as the price declines it potential upside increases. It is only 5X earnings right now. Sentiment has shifted with Trump tariffs, but it has shown good growth and more growth is expected. It has a strong balance sheet with a net cash position. It generates good free cash flow. Small caps can be frustrating and a long term focus is advised. There are still risks, but its valuation we think clearly reflects them and upside potential exists.