Q: After reading your response to earnings, I was surprised by the sell off. Things looked pretty good but I guess the market wants more, and quicker. What's your take on things after the sell off? Was the size of it justified? Buy, hold or sell?
5i Research Answer:
LSPD continues to trade at a premium valuation and is not yet profitable, but its results are improving. We feel that the 20%+ selloff was likely an overreaction, or at least, the result of many throwing in the towel and seeking other opportunities. We would be comfortable holding the name at this time, as management is improving its operational efficiencies, and sales growth continues to be strong. In an even further 'risk-on' environment, we can see these names improving both earnings results and valuation.