Q: Hi, I got in when it was supposedly cheap, at about $12.80. It's now hovering at around $8. As a non-resident, selling for tax losses doesn't apply. As you wrote recently that you're not fans of investing to break even, do you have any opinions on possible moves? Sell some at a loss to invest in better stocks, hold for a while and see what happens with tariffs, hold for a longer period of time as this is a good stock and we'll pay off over the next couple years? Thank you for your time.
5i Research Answer:
DRX recently reported a much better outlook and the stock made a huge upwards move. It has drifted a bit since then, but our call would be to keep it for a few more quarters at least. The trend is improving, and another good quarter we think would spark more investor demand. There are tariff and economic risks here, but the valuation is so low (6.8X earnings) that we think the risk is well-reflected. A normal valuation here could be 9X to 11X, so if it can execute there is upside here for sure.