Q: Held forever! Starting to believe this is another Knight ?
Potential but goes nowhere!
Feel like a lost opportunity holding this company.
Comments.
Potential but goes nowhere!
Feel like a lost opportunity holding this company.
Comments.
5i Research Answer:
GUD saw consistent execution problems and financial performance that stagnated, whereas WELL is stagnant on a price per share basis, but its fundamentals are mostly growing. Sales growth is strong, forward earnings growth has jumped due to its recent acquisition, but there are concerns with its slowing gross profit margins and free cash flows. It is priced well (9.3X forward earnings), but this is reflecting some of its underlying margin slowdown issues. This is a 'show-me' story for now, but we think if it can resolve some of the regulatory and other issues in its next earnings results, the story could turn around quickly.