Q: Good day
Are u guys seriously considering dumping this disappointing name from the growth portfolio ?
Will patience pay off here for holders of this name or is this another covalon technologies or xebec .. I certainly hope this is not the case
Thx
Mark
Are u guys seriously considering dumping this disappointing name from the growth portfolio ?
Will patience pay off here for holders of this name or is this another covalon technologies or xebec .. I certainly hope this is not the case
Thx
Mark
5i Research Answer:
We have to pay attention to trends, and the stock has been a big disappointment. It is at a 3-year low, at a time when many small caps are recovering nicely. Debt is still high for real comfort. At current prices it is a 2% position in the growth portfolio. We would not want to buy more at this point, so our decision is whether other stocks are likely to perform better. For now it is a HOLD, but certainly we need to see an improvement here to maintain a position.