Q: Is this a buying opportunity after the sell off today?
5i Research Answer:
We have comments posted on the latest earnings results from NVEI. We continue to like its growth and fundamentals, but its balance sheet contracted for the quarter and profits declined as a result of integration and acquisition costs. We feel that investors will need to see future quarters show improvement as these one-time costs roll off, but we would consider it to be a 'hold' for now until the price finds a floor and settles in. As the volatility in the name begins to decrease, we would be comfortable adding at lower prices given its decent valuation and good growth rates.