Q: I have held GSY for many years, and watched as it grew and grew. This sudden crash to about $20 strikes fear into me. Can this be just the work of a short seller report, or is there something fundamentally broken at GSY? Or do you really think this is one helluva good time to buy a pot full of GSY?
Keep up the good work. Wish me luck, or at least sensisble investing.
Elmer
Keep up the good work. Wish me luck, or at least sensisble investing.
Elmer
5i Research Answer:
We see the drop as more related to the recent earnings and fears around a trend forming here. However, given the intense investor fears surrounding GSY, shares have now traded down to what is essentially a 20-year lower bound in valuation outside of 2020 (other lows being around 6.3X vs 7.3X currently). In other words, we think markets have ripped the band aid off at this stage and are pricing in a lot of bad news.