Q: Hey folks...any thoughts on this company? View as a buy/sell...thanks.
5i Research Answer:
We would be a bit more interested in SVI in the $4.25 range. The company has done an admirable job building out its business and consolidating its acquisitions. There are still plenty of small operators it can acquire. The stock had an initial big run and now has paused a bit (down 19% YTD) as investors reconsider economic prospects and the company's quite-high debt load. We do not think SVI has done anything wrong, but we would consider it a higher risk position now with higher interest rates and somewhat of an economic slowdown. It may see some tax loss selling. Generally though we like it, but would like it more a bit cheaper to reflect some of the risks here.