Q: Hi 5i,
NEO has been going down for some time.Do you know why? Would you be comfortable buying it here?
Thanks. Cheers
NEO has been going down for some time.Do you know why? Would you be comfortable buying it here?
Thanks. Cheers
5i Research Answer:
NEO ran up hard due to trade-war (rare earth) tensions with China, and has backed off as these tensions cooled recently. It is still up 113% for the year. There was no news to account for yesterday's big decline. It is a small company in a relatively volatile and cyclical sector. But...it pays a dividend, good growth is expected and its balance sheet is fine. It is not cheap on valuation anymore as it has been in the past, but we would be comfortable buying a small position for small cap investors.