Q: Peter and His Wonder Team
I have held this stock for too long...if you know what I mean! Ha!Ha! The good news is that I am now even and thinking about selling. However some analysts have a 100% up side forecast which I know is only a forecast. Please...I appreciate your objective opinion. Sell because there are better opportunities...or it is worth waiting another quarter two?
Thanks as always!
I have held this stock for too long...if you know what I mean! Ha!Ha! The good news is that I am now even and thinking about selling. However some analysts have a 100% up side forecast which I know is only a forecast. Please...I appreciate your objective opinion. Sell because there are better opportunities...or it is worth waiting another quarter two?
Thanks as always!
5i Research Answer:
Historicall, ACX's balance sheet has been weak, and it has lost money in multiple years. Now, the balance sheet is vastly improved, with net debt less than 1X cash flow. It is profitable, with strong EPS growth this year and about 15% or so expected in 2025. Cash flow has improved. The sector (its customers) is in good shape financially. Yet, the stock trades at 5X earnings, very very low even for the energy service sector. Momentum has picked up, and barring a complete collapse of the sector, we would be inclinded to keep this now that fundamentals have improved and risks have declined.