Q: Hi 5i Team - Do you have confidence that the management team can execute on their plans. We have held this stock for some time based on their potential but it doesn't seem to realize this potential. It's performance has been disappointing so am wondering what it would take to get discouraged investors interested again. What are the insider holdings and has there been any recent buying or selling by them. If you think it best to wait until after it reports
tomorrow before answering that's fine. I am considering selling all our shares and using the money elsewhere but want to consider all the factors. Thanks.
tomorrow before answering that's fine. I am considering selling all our shares and using the money elsewhere but want to consider all the factors. Thanks.
5i Research Answer:
We have comments on the quarter posted now. We still have some faith, but it is getting tested. There is an opportunity still as the stock is very cheap right now after this year's decline. We would like to see better execution, lower debt and higher cash flow. We like the recent Healwell deal, and will allow it a few more quarters. The accounting issue this year took the wind out of its sails, but has now been resolved. Insiders own 20%, and have been minor net buyers within the last six months. We would see it as HOLD today.