Q: I own shares of CJT and am down quite a bit. Can you comment on their earnings? Do you think this is a good candidate for tax loss selling with a buyback after 30 days or is it better to move on to something else? Most analysts seem to look favourably on it with target prices well above the current price.
5i Research Answer:
EPS of 30c missed estimates of 70c; revenue of $214M missed estimates by 2%. EBITDA of $70M missed by 4%. A couple of brokers cut their target prices. CJT noted that volumes for discretionary items are starting to slow. It did implement a share buyback program. Revenue did fall year over year. The dividend was raised by 10%. While it is clearly experiencing a slowdown, EPS is still expected to rise 25% in 2024. The stock is well down from its high, and we think a tax loss/re-buy strategy should work well here. The average target right now is $135.