Q: Would you see this recent weakness as a buying opportunity,I didn’t think the quarter was that bad,what are your thoughts on the company as far as debt growth and management for a 2-3 year hold
Thank you
Thank you
5i Research Answer:
We have comments posted on earnings today. Debt is not that bad, certainly manageable. Net debt now is only about 1X cash flow. Debt has declined $50M since 2022. Management has done an OK job but has missed expecations quite a few times. This has resulted in stock volatility and subsequentially lower valuations, on average. We think it will be buyable, but would let today's 'miss' settle into the stock a bit more.