Q: I am thinking of starting a position in CWX but want your thoughts before I pull the trigger. They recently announced what appears to be very strong preliminary results for Q1 and the stock had been responding nicely, hitting an all time high ($10.83). Then this morning the company announced a $75m bought deal at $10.00 per share to shore up the balance sheet and have money for acquisitions. The stock is now 10% off the high set a few days ago. Is this an opportunity to jump in and take advantage of a temporary dip as the new shares are absorbed into the market or are there any warning signs you see? As well, do you have confidence in management and see this as a solid long term investment with a safe dividend yield (currently 4.88%)
Many Thanks
Scott
Many Thanks
Scott