Q: This company just reported 3Q results on February 5 and the share price increased 10% since then on large volume. Do you think the results represent a turn and that it could be bought here?
5i Research Answer:
Results were good, and the stock is now up 22% YTD. However, it has risen to 27X earnings, and with its small size and leveraged balance sheet, and generally low-growth industry, we would not chase this, and would be more interested in the $4.50 range.