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  5. CTS: Good day guys . [Converge Technology Solutions Corp.]
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Investment Q&A

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Q: Good day guys ..
Would u agree with Mr Jordan’s zinberg assessment for this name .. recently it has been hold in your eyes.. is it now a buy at current levels .. this guy is a donville disciple and appears to be rather sharp in picking small cap stocks.. would u follow his lead here and buy as he currently thinks it’s at maximum pessimism..
thank u
Mark
Asked by Mark on July 06, 2023
5i Research Answer:

The stock's momentum has certainly been negative, however, it pays a yield of 1.2%, has shown good revenue growth, and generates free cash flow. It has a healthy balance sheet, but its profit margins are thin. Valuation is quite cheap, with a forward sales multiple of 0.3X, a forward P/E of 7.1X, and a price to book of 1.1X. It expects small revenue growth over the next few years, a slight decline in earnings this year with strong growth thereafter. We typically do not like buying on negative momentum and would prefer to see the stock find its footing, but we would be comfortable with holding here, and for an investor with a long timeframe and has a high risk tolerance, we would be OK with adding here in the event that it rebounds from these levels.