Analysis and buy sell or hold would be much appreciated!
Thanx
Gary
Investors do not like share consolidations (1 for 6 in this case). The stock is down 33% this year and 46% over 52 weeks. The balance sheet was fine, with debt to cash flow just below 1X (see below). Good growth is expected next year (based on consensus). Valuation is very low at less than 4X earnings. The payout ratio in 2024 was only 22%. Still, we would not expect the 15.5% dividend to last. Its big acquisition has added $301M debt, and it sold shares in February. Shares are below the price of the Feb. deal. We would not expect a cut so soon after an equity issue/acquisition, but management must be looking at the yield. Investors 'expect' a cut and sometimes it is just better to get it over with. We would not really see solvency as a big concern here, but its small size , the weak momentum and dividend risk and sector weakness likely means a whole lot of nothing may continue for a while.