Q: Good afternoon,
I’ve a question on KXS that isn’t quite answered in the res ent history. I owned this stock in the past and sold out because it did nothing after getting to $200. The stock is cycling between the low-mid $100’s and $200, now ducking below $150.
What is causing the downtrend? Has this stock reached the lower threshold for a buy rating or do you expect further decline? It is getting intriguing, yet it is also frustrating.
Thanks,
Dave
I’ve a question on KXS that isn’t quite answered in the res ent history. I owned this stock in the past and sold out because it did nothing after getting to $200. The stock is cycling between the low-mid $100’s and $200, now ducking below $150.
What is causing the downtrend? Has this stock reached the lower threshold for a buy rating or do you expect further decline? It is getting intriguing, yet it is also frustrating.
Thanks,
Dave
5i Research Answer:
KXS is a 'conservative' stock with far too much cash, and in a 'risk on' market is not nearly exciting enough for investors. Then, we have worries that AI will start cannibalizing its business (this remains to be seen). Logistics-wise, tariffs have also been a drag on sentiment towards supply chain companies (less cross border activity). KXS also missed revenue estimates last quarter. We do not like the momentum here and the stock is really not that cheap at 28X earnings. We are OK with it (for now) as a HOLD but would caution against buying until we see some trend reversal.