Q: Good morning 5i:
I successfully bailed on all tech stocks sometime ago and have been thinking about re-entering. How would you rate NVEI and LMN for long term growth? Would you start a position in either at this time?
Thank you.
Doc
I successfully bailed on all tech stocks sometime ago and have been thinking about re-entering. How would you rate NVEI and LMN for long term growth? Would you start a position in either at this time?
Thank you.
Doc
5i Research Answer:
We like both and would be fine buying either today. NVEI has been weak following its last quarter, but is very cheap now and the long term outlook still looks very good. LMN is more expensive, but we have a lot of confidence in it. It has the potential to grow fast with acquisitions and we expect it to follow the 'CSU Model', by slowly building cash flow and keeping its share count low. The balance sheet is fine and we thin it is a long term keeper. It has no analyst coverage so it can be 'quiet' but we think owners today will be quite happy in five years' time.