PLC says the sold properties do not fit into its long term plans. Investors have been concerned about its leverage, so the balance sheet improves a bit. When PLC proposed to buy Carriage, shareholders got even more worried about debt exposure. It looks like mgmt. is basically trying to slim down a bit. We do not think the two items are related, but one never knows. Carriage would probably be a good fit for PLC at some point in the future. The stock has reacted negatively because it (a diverstiture) does of course go against its past acquisition trends. Also, it reminds investors that the company is quite leveraged in a high rate environment.
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