Q: Comment on it's recent decline and attractiveness today please. Thanks.
5i Research Answer:
Down 31% YTD, VCM still trades at an expensive 41X earnings. Insiders own 58%. A hedge fund owns another 12%, making shares tightly held. Earnings fell sharply in 2024 and another decline is expected in 2025 before a bounce predicted in 2026. The last quarter was quite rough, with a loss reported vs an expected profit (32c loss vs estimates of +2c). The company announced cost-reduction efforts in December but they have not yet taken hold. There is a 2% dividend but it has not been raised since 2015. With recent results and the weak momentum, it is very hard for us to generate interest in this one.