Q: Thanks for the blog link on CSU. My focus is on LMN.
Can Leonrad's comments be directly translated to LMN's outlook as well? Do you see any differences in potential risk for LMN ? Do you have any experience in this type of investment uncertainty where a floor is eventually established on stock price when it simply becomes too hard to resist (I acknowledge this one is a bit of a predictive question ! ).
Can Leonrad's comments be directly translated to LMN's outlook as well? Do you see any differences in potential risk for LMN ? Do you have any experience in this type of investment uncertainty where a floor is eventually established on stock price when it simply becomes too hard to resist (I acknowledge this one is a bit of a predictive question ! ).
5i Research Answer:
Comments on the risks and opportunities would largely be the same for LMN without major differences. LMN is much smaller and thus may be more 'nimble' in adapting or acquiring companies in order to evolve. The second question is harder. These stocks are declining only on sentiment and not on actual fundamental changes (yet). Thus, a floor is very hard to call since sentiment traders care less about fundamentals and are more into 'worrying'. We doubt large long term shareholders will be exiting, but LMN has a big retail following and many holders are still sitting on gains. A 10% decline would not surprise us if sentiment stays bad, and we would be more interested in more buying if that occurred.