For a long-term position, we would be comfortable with NVEI at today's levels but we might give it a bit of time to settle given the momentum. Strong growth prospects and the company recently completed a large acquisition. We like its risk/return potential from current levels. If management executes well and the overall market co-operates, a company like this could see multiple expansion. The cons at this stage are that the balance sheet has been stretched and the current negative momentum with recent quarterly earnings. We think some of the negative sentiment has been a bit overdone.
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