Q: Hello 5i
Since last earnings and most recent Q&A in 5i (Nov 7) this share price has been falling.
Is the price action related to the previous earnings miss or earnings growth expectations changing due to business or Tariff concerns?
With a 5 year view on this name, does one just continue to hold through the downside volatility with anticipation for better future earnings and share price?
Thank
Since last earnings and most recent Q&A in 5i (Nov 7) this share price has been falling.
Is the price action related to the previous earnings miss or earnings growth expectations changing due to business or Tariff concerns?
With a 5 year view on this name, does one just continue to hold through the downside volatility with anticipation for better future earnings and share price?
Thank
5i Research Answer:
Markets have gone into another 'risk off' period and small caps have not been immune. There has been zero news from the company since Nov 26 (buyback approval) and we doubt the company will be impacted much by tariffs. The Q3 was a miss, and it is not a cheap stock if one is just looking at P/E. But with no reason for additional worry we would be fine maintaining a position.