Q: The last 3 Q's it has shown good growth through its acquisitions in the RTD market. The price has not responded to what I see as the potential growth turn around and you have provided some support for this thesis in previous questions. It reports February 12 and I am wondering if the Q is good would you continue to wait for a turnaround in the price or would you move on? How long would you wait? It is at a long term low price, feel it can't go any lower, but while waiting I have missed on stocks like CLS.
5i Research Answer:
We would keep in mind that ANY stock can still go lower, whether for corporate or market reasons. Cheap stocks can certainly still get cheaper. But the stock has stabilized, and is up 8.6% in the past year in addition to the dividend. Cash flow remains good. There are no analysts so no estimates, but sales rose 11% last quarter and 3% organically. For now, we would be fine holding, and would give this at least two more reported quarters.