Q: Hi Peter, I thought I finally had a winner with CSU. I have 7 shares and it was nice when they were close to 5000.00, thinking they might go higher. It's always hard to sell the winners. Even though I still have a bit of a gain is it time to forget about this high price for CSU. I know you can't predict the future but how low could this go, it's not going to be another Nortel, or drop down to 500 or 700 is it? Would it be a good time to add or sell. Can you give us some encouragement or some guidance with this. Much appreciated.
5i Research Answer:
We do have multiple comments posted on CSU over the past week and will have more tomorrow after the conference call to discuss the leadership transition. We think it still has good long term potential and we would not want to be selling into this decline. Certainly the CEO exit is a blow to the company but it will recover, and each subsidiary is run independently. There is a lot of angst because the stock hardly ever goes down. It has done an exceptional job for 20 years and with the new price level we think it can do well, but there still might be some volatility (5% perhaps) in the short term.