Q: It looks like ADF Group's share price has turned around and is heading up again. Is this the point to start building a position or would you wait longer to confirm the trend? Thanks.
5i Research Answer:
DRX has had a couple of good weeks. We liked the stock at $8.60 and would not change this view at $10. It is very cheap at 5X earnings, and sentiment got quite low. Since its high this year was near $21, it may have seen some tax loss selling, and the tick up in December may indicate this has ended or tapered off. We would be comfortable buying.