Q: Good morning, it looks like ATZ will be having a rough day after their most recent earnings report. Do you think it will be a good time to buy after the damage is over and the stock settles down thanks?
5i Research Answer:
It is going to be rough. It is hard to call without knowing where the price will be. We do expect the low of the day to be in the early morning panic sell off. The company still has plenty of room to grow, but management will need to take a credibility hit here on inventory, as they indicated it was needed for growth and have been very wrong so far. We are confident ATZ will get over this but expect the stock to be in the penalty box for some time. But we are also fairly confident in a couple of years it will be higher than wherever it closes out its price today.