Q: Since reaching an ATH a few months ago, the stock has been trending downward. Can you provide some of the reasons for this decline.
Much appreciate your service.
Much appreciate your service.
5i Research Answer:
The sector has not been great, with politics continuing to discuss ways to lower costs across the board. VHI did miss earnings estimates last quarter (it beat on revenue). It has seen some target price downgrades (RBC). Small caps have had several 'false rallies' this year and are now back in 'fear' mode. Its valuation 'looks' very high if an investor does not believe in its high growth potential. Finally, we may be seeing some year-end or tax-loss selling this month.