Q: DCBO has dropped from it’s $72 high. Any thoughts?
5i Research Answer:
There is no news on DCBO. The stock has an expensive valuation of 65.5x forward earnings, but there is significant earnings and revenue growth expected in the next few years. There was plenty of upward momentum for DCBO following the strong Q3, with the stock up nearly 20% in the last month. We continue to like DCBO. The weakness is surprising, but trading volume has been low, except for a spike on Monday. We think it looks good here.