Two questions:
1) Would YOU put new/fresh money into CSU TODAY? Please give a brief reasoning for your answer.
2) If YOU had owned CSU shares for a number of years, what would you do with them today (irrespective of portfolio make-up)? Please give a brief reasoning for your answer.
Thank you
While we are not overly concerned about CSU's financial metrics/growth/M&A in the short term, the current uncertainty is leading to a lot of nervous investors who are sitting on giant embedded gains. Uncertainty is usually bad for stock prices. We would prefer to see the stock settle before getting more aggressive on the buy side. We do think investors may be over reacting here to a problem that has not yet resulted in any real fundamental deterioration. But sentiment has shifted and with little news otherwise many investors may sell just on uncertainty. So we would be reluctant to add while in negative momentum.
2) We would do nothing. We think management has proven their skill for long enough to enjoy the benefit of the doubt here. The company could not be definitive on its call, because no one knows how things will develop. But it is not sitting on its rear waiting for problems: it is being pro-active and it has many opportunities ahead of it in many areas.