Q: have you changed your views on IVX
5i Research Answer:
At $13M market cap, with four shareholders owning 72% of the company, we just cannot endorse it. Fundamentally, we still like IVX, still trading at a single-digit multiple, while growth in the last few years grew more than 20% on average. The recent slowdown in revenue growth was expected following explosive growth in 2021 and 2022. The company expects growth to return in 2024 as telecoms ramp up their investments. The company also has a track record of paying special dividends, and the business does have decent ROEs, a strong balance sheet and trading at 6.6x P/E. We generally do not suggest investors buy stocks with market caps less than the $25M and even then these should always be considered extremely speculative.