Q: Greetings,
From what I can gather (simplywallstreet) the last noted insider purchase was in June of last year at $160.
The price today is about $128 and the 52 week low was $117 and no sign, as of yet of recent insider buys.
1) Previously happy to pay $160 but no longer happy to pay $128? Can anything be made of this and what is your rational for continued optimism?
2) What would be your recommended entry price?
3) If I had 100 units of cash then how would you ratio the purchase of PRL?
All the best,
A
From what I can gather (simplywallstreet) the last noted insider purchase was in June of last year at $160.
The price today is about $128 and the 52 week low was $117 and no sign, as of yet of recent insider buys.
1) Previously happy to pay $160 but no longer happy to pay $128? Can anything be made of this and what is your rational for continued optimism?
2) What would be your recommended entry price?
3) If I had 100 units of cash then how would you ratio the purchase of PRL?
All the best,
A
5i Research Answer:
Certainly we would like to see more insider committment. But insiders do own $100M worth of stock right now. Our confidence really stems from a combination of sentiment (so bad, so any improvement could move the stock) and valuation (historically low). GSY has survived numerous downturns. Credit quality (which is key) remains very high. As banks get more strict with credit, GSY should benefit. Even with weak sentiment, consensus calls for 25% earnings growth this year. Lower interest rates could also be a tailwind. Suggested entry $125. If splitting the two stocks we would use 60/40 GSY/PRL.