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  5. CTS: converge is doing a strategic review to maximize shareholder value-mgmts words not mine. [Converge Technology Solutions Corp.]
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Q: converge is doing a strategic review to maximize shareholder value-mgmts words not mine.
after initial pop from 4-5 stock is selling off.
analysts think its unlikely to go for less than 9-10. whats your opinion.and is the sell off tax loss selling?
dave

Asked by david on November 30, 2022
5i Research Answer:

There likely is still a bit of tax loss selling. Valuation in a deal is always debatable. A strategic buyer can pay more. Trading now at 0.4X sales, there are literally dozens of companies with much higher valuations that could make a deal work and add $3B in sales (2023 estimates). Regardless of what it is 'worth', with the stock at $12 less than a year ago, we highly doubt management would entertain bids at half that level, and $8 is probably their 'talking' level.