Q: Hi, can I get your take on ACT Energy Technologies. I have held a small position for a long time and am wondering if it is worth hanging on to. Do you see any near term catalyst for the stock price? Thank-you.
5i Research Answer:
ACT is expected to see lower overall earnings this year (all in) and then an EPS bounce next year. It does show the cyclicality of the energy services sector. The stock is cheap, but not really cheaper than many in the sector. The balance sheet is OK. Insiders own 12%. Its small size does keep some investors less interested. We do not think anything is 'wrong' here but at the same time would not consider it a must-own. The sector remains challenged overall as well. We do not see any particular short term catalysts.