However, having read your previous comments and the fact that it has missed on most of its numbers and not delivered on its “positive” guidance for quarter after quarter I am wondering what will turn this company around and when?
And will that be enough to turn the big money funds get interested again. I would guess they are a bit skeptical right now.
Do you see anything positive on the horizon?
The company, historically (longer term), has done a good job and has had its days in the sun before. 10-year return is 95%. Not spectacular, but OK. Valuation is very attractve at 9X earnings and the the dividend of 2.81% is decent. But the dividend has not grown at all, and, debt is on the high side. Consensus calls for earnings growth in the next two years. It is not all bad here. But it needs a catalyst. It has done M&A in the past and this could be a spark. Lower debt and better execution could renew interest. But for now, momentum is weak and estimates have been ticking down, so we would not expect much in the short term.