Q: Another one on Constellation.
All software stocks bounced nicely, in Friday's trading ( IGV - Tech software ETF also bounced off its low of $80, Thursday ).
But, on a day like this, CSU is down 4% (after reversing from $2570, on Thursday ), contrasting the trend of its peers. If CSU has been hammered, over past several months, due to AI scare, like many other software Co's, it should follow the trend and be up today, but sadly no.
It appears to me that CSU may have found a bottom, in the near term ( $2175-$2200), but could well remain range bound, until posting at least a couple of solid quarters, irrespective of the general trend in software co's ( AI related fears).
Would you agree with these observations ?
Thank You
All software stocks bounced nicely, in Friday's trading ( IGV - Tech software ETF also bounced off its low of $80, Thursday ).
But, on a day like this, CSU is down 4% (after reversing from $2570, on Thursday ), contrasting the trend of its peers. If CSU has been hammered, over past several months, due to AI scare, like many other software Co's, it should follow the trend and be up today, but sadly no.
It appears to me that CSU may have found a bottom, in the near term ( $2175-$2200), but could well remain range bound, until posting at least a couple of solid quarters, irrespective of the general trend in software co's ( AI related fears).
Would you agree with these observations ?
Thank You
5i Research Answer:
CSU is probably close to bottoming. Sentiment got about as low as it can get, we think, considering there was no fundamental or company negative news (its acquisitions were positive). But we would not look at one day of trading. CSU very much went against the grain on Wednesday with an 8.5% gain, so it sort of 'pre gained' today's tech rally a bit. But there are still worried shareholders with giant embedded long term profits, so the stock does not always trade in line with the sector.