Q: Hi 5i,
A little disappointed with the performance of these two stocks. Are there worth holding? What would help sway your decision one way or another?
If you had to replace them with two stocks that have a higher likelihood for better performance, which would you choose?
Thanks!
A little disappointed with the performance of these two stocks. Are there worth holding? What would help sway your decision one way or another?
If you had to replace them with two stocks that have a higher likelihood for better performance, which would you choose?
Thanks!
5i Research Answer:
The supply chain software companies have been out of favour over the last year and software more broadly has also been out of favour. We think both companies remain strong and don't see much of a reason to change a view on these names from a fundamental perspective. Forced to choose between the two we would side with DSG. They have a long track record of of executing on their strategy and have shown an ability to execute on tuck in acquisitions to further support the growth profile. We would like to see KXS spend some of its excess cash. But we have been waiting more than five years for this to happen.