Q: Is it reasonabl buy some Well before its Q after market close as appears to be very oversold on the delay of filing Q report .Txs for u usual great services & views
5i Research Answer:
The market reaction to its delayed filing was pretty strong, and it now trades at a 14.7X forward earnings, provided it does not guide lower following its earnings release. Sales growth has been impressive, and we think there is some upside potential with its recent acquisition. In general, we do not like buying right before earnings releases, and with its uncertainty around the delay of its filing, we would prefer to wait until it reports, even if there is an opportunity cost to it (in the event it rises following its earnings).