Q: Hi Team,
NVEI announced partnership with CASH APP yesterday. I had expected this to be a bigger deal than the market is telling us. It seems nothing can move the needle with this name. Is it being constantly held down by the shorts? Is it worth holding on to? I am down huge in this name (-78%), and so far, it doesn't seem to be recovering.
Thanks,
Shane.
NVEI announced partnership with CASH APP yesterday. I had expected this to be a bigger deal than the market is telling us. It seems nothing can move the needle with this name. Is it being constantly held down by the shorts? Is it worth holding on to? I am down huge in this name (-78%), and so far, it doesn't seem to be recovering.
Thanks,
Shane.
5i Research Answer:
Short position is 3.3% in the US and 2.5% in Canada, nothing particularly significant for the sector. The stock is down 34% in a year and 7% in 2024. With its last earnings and outlook, we are giving it a couple of more quarters. It has signed some other partnerships recently, and is re-focusing on the business. Some very weak quarters, a large customer lost and confusion over the dividend (for a growth company) did annoy investors last year. We would like to see debt decline. Quite decent earnings growth is expected this year, if it can execute.