Q: I have held this stock for low volatility, a little growth and a steady income. However its performance in the last 12 months has been dreadful. Is is just poorly managed or is there some other fundamental problem with the company?
Do you think there is much of a possibility it could be bought out by its major shareholder?
Do you think there is much of a possibility it could be bought out by its major shareholder?
5i Research Answer:
Please see this answer from December 1. Weak sales and debt are a bad combination. We do not think the management team is completely at fault as sector dynamics have changed. At about 16X earnings, we would not expect a privatization.