Q: CJT: I bought at $103 in Aug. and sold at $77 in Dec. for tax loss selling - held small position - 500 shares - man it has gone up a lot since then. Why? I assume you think I should stay away? Comments please.
5i Research Answer:
CJT is up 15% YTD but still down 11% over one year. There has been no company news since December but it has received several broker upgrades since then. In addition the industrial sector has really done well, led by US industrials and the transportation sector, which has hit records. CJT has benefited from this sector rotation. Based on consensus, EPS is not expected to rise much this year. While the momentum is good, at 24x earnings we do not think investors need to buy.