Q: your thoughts on the recent quarterly report please? Seems like there is a pattern forming? last quarter was also disappointing. Is this stock worth holding ?
Arnold
Arnold
5i Research Answer:
Results in the recent quarter looked good with book value up 10% and revenues up 8%. Alaris deployed another $74 mln in the quarter and recently announed a $115 mln investment, so they are putting their cash to work. They also repurchased 112,500 units in the quarter. With shares trading at 9X earnings and a 7% yield, we think it is fine to hold for income but we might not expect a whole lot in capital gains here.