Q: Can you provide any sort of update on this company. I understand that the strategic update in August could be interesting, however, what other catalysts could be on the horizon? How do you like the risk/reward scenario? Has there been insider buying? Would you take a starter position here?
5i Research Answer:
There is not really a lot to add. There has been no news in about a month. Some insiders were granted performance units but no significant buying (we would expect insiders are restricted while the review is ongoing). Typically, catalysts would be earnings and acquisitions. Earnings have been weak, and there may (or not) be acquisition discussions as part of the review. But likely not a lot of catalyst action before the review. Lower interest rates 'should' help sentiment a lot. Consumers (the end customer) remains in generally good shape, with high employment. We would be OK owning some at current levels. Expectations are very low here, but management has pulled rabbits out of hats before.