Q: Hi 5i
I used to watch and trade MX (45.64) and looked at it again today. It seems to be quite bouncy so recent pullback is tempting me. I notice CEO Rich Sumner has been accumulating shares at prices $49 to $58 (from G&M site). Is there any reason that it tends to swing so much? Approx. what % of revenue comes from Europe and do you see any catalyst that could cause a pop?
Thanks, Greg
I used to watch and trade MX (45.64) and looked at it again today. It seems to be quite bouncy so recent pullback is tempting me. I notice CEO Rich Sumner has been accumulating shares at prices $49 to $58 (from G&M site). Is there any reason that it tends to swing so much? Approx. what % of revenue comes from Europe and do you see any catalyst that could cause a pop?
Thanks, Greg
5i Research Answer:
MX is volatile largely because of economic uncertainty, very large customers, and variations in contract prices. Annual earnings swing wildly, from a loss of $2.06 per share to a gain of $6.13 per share just in the last five years alone. The stock is having a rough year, down 35%, but is now very cheap at 11X earnings. In 2024 Europe accounted for $841M in sales of a total of $3.7B. Earnings could cause a pop, if good, though the last quarter was mixed. The stock has moved up (average 3%) on 10 of the last 11 earnings releases. But generally it is economic prospects (China in particular) and contract announcements that will move the stock more.