Q: This continues to grind lower and I am thinking it may have gone past a reasonable decline. Any comments you could provide would be appreciated before I start building a position.
5i Research Answer:
We can't add much to previous discussions. Small caps continue to see selling, and with PLC's 36% YTD loss it could be vulnerable to tax loss selling as well. EPS is expected to grow at least 15% in 2024. The recent asset sale helps the balance sheet, which should help valuation as the $55M deal compares with $272M debt. Not huge, but leverage has been shareholders' concern of late. Insiders have been small net buyers in the last six months.