Q: In the next 2 to 3 quarterly reports, what do you wish to see for confirmation of your long view?
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5i Research Answer:
NBLY is not yet profitable, but its margins have been improving over the past few years, and we would like to see a continuation of this improvement and an eventual shift to profitability. We would like to see it continue expanding its network, growing top-line sales, and while it pays a 1% yield, we would also prefer to see a buyback plan initiated. Continued acquisitions at good valuations will also help to confirm our long-term view on the name. A beat on sales and earnings is a good start, and raising guidance will certainly help its price.