Q: Has the situation changed re: JWEL? In July you suggested 15X or $ 24.60/share as a better entry point. We are there but it keeps dropping. Start accumulating or wait till it finds a bottom?
5i Research Answer:
With negative momentum and high debt, going into a possible consumer slowdown, we think investors may have a bit of time here. It is starting to get more attractive on yield (3%, with the dividend raised in August) but we think buyers could proceed very slowly. It may even see some tax loss selling into year end. If it dips to sub $23 we think investors could start a small position (1/4 perhaps) and proceed from there.