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  5. CTS: Was around $7 then a Murray Wealth Group report leaked that they will miss earnings on the high side. [Converge Technology Solutions Corp.]
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Investment Q&A

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Q: Was around $7 then a Murray Wealth Group report leaked that they will miss earnings on the high side. The stock went fro $7 to $5. Then the earnings came out and after initially rising over $5, they have now dropped to $3.70.

Was the earnings bad enough to warrant this drop? Does this make sense or is the a "table pounding buy" with a present PE of lower than 10?
Thanks

Asked by Herm on November 22, 2022
5i Research Answer:

The stock is cheap and we think has potential. But with year end approaching and stock momentum highly negative we would not be in a table-pounding mood yet. It has fairly high debt, missed sales estimates and investors are worried about a recession. EPS is expected to increase 30% next year, based on analysts' estimates.