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Investment Q&A

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Q: This looks super cheap. Can you provide the pro's and cons of taking a position in this company. What other 3 in this sector would you prefer with potential near term torque?

Asked by Christopher on June 22, 2022

5i Research Answer:

GTE is trading at a really cheap valuation; with a price to sales ratio of 0.6X, P/E of 3.2X, and price to book of 1.5X, however, its debt to equity ratio is almost 2.0. Its equity position has improved over the past several quarters, but it has not yet recovered from 2020. The pro's of this company are its strong leverage and top-line growth and cons are its high debt position.

We would prefer ARX, TVE, and TOU.

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