Q: I am not liking the way this is trading coming into earnings. "Don't fight the ticker tape" comes to mind. Open text traded the same before it released less than stellar earnings. What do you see happening here?
5i Research Answer:
We can't predict this with any accuracy, but KXS has beaten estimates about 62% of the time, so odds are slightly in favour of a beat. But stocks do not always react as one expects, anyway. The stock moves an average of +/- 8% on earnings. We remain comfortable, but would really like to see the company spend some of its cash hoard to further accelerate growth.