Q: Q1 looked pretty good...what is your take on the dividend? Is it the best use of capital going forward or is it only meant to make up for the strategic review closing...otherwise this looks like a company I'd like to buy/hold. Curious on what you think about it? Thanks as always.
5i Research Answer:
The dividend does look like an "appeasement" to shareholders but we don't really agree with. The change in strategy (more organic growth, less acquisitions) may improve balance sheet tisk but may also slow growth. The quarter showed decent growth and really was not so bad. Investors seem more angry at the lack of sale and the strategy change. We need to examine things further but would like to see the stock settle down and would only rate it as a HOLD right now.