Q: This stock has experienced significant value decline over the past several years. Based on the most recent results and forecast, I’m becoming concerned about the long-term prospects for the company.
1) While I’m willing to hold through a downturn, I’m considering whether it makes sense to maintain my position or exit.
2) The company continues to increase its annual dividend and execute share buybacks. However, I question whether these actions meaningfully improve EPS compared to reducing debt. Is this a case of short-term investor appeasement, or would the market penalize a shift toward debt reduction?
Can I please get your thoughts on the company and the EPS question. Much appreciated.
1) While I’m willing to hold through a downturn, I’m considering whether it makes sense to maintain my position or exit.
2) The company continues to increase its annual dividend and execute share buybacks. However, I question whether these actions meaningfully improve EPS compared to reducing debt. Is this a case of short-term investor appeasement, or would the market penalize a shift toward debt reduction?
Can I please get your thoughts on the company and the EPS question. Much appreciated.
Q: I’m trying to understand why the stock price is doing so poorly. The price has significantly dropped YTD, over 48% and 37% in 1 year. The price is $30 below their initial share price when they were spun out from SNX in late 2020. Part of the reason I think is they bought a company (Webhelp) which the market didn’t seem to like? Recent results have been mixed and they now have $5.8B in debt. They are profitable and have some money in the bank though. Any ideas why the stock has dropped so much? Are they now priced correctly or are they fairly undervalued with a potential to grow share price again?