Q: Hello, I have recently invested in CSU (2 months) and saw the stock price go down by a third so far. In your crystal ball, do you believe there could be a catalyst at earnings’ time, to get the share price jumping? Is there a chance they might do a conference call, for once? I am tempted to sell for tax loss reasons, but it would be frustrating to see the price jump 10-20% afterwards… Thanks
5i Research Answer:
Earnings and acquisitions could provide positive catalysts. Right now it is sentiment driving the stock. There has been no fundamental negative news other than the CEO switch last year. Software investors are scared, though. We would not view it as a SELL today, but risks remain elevated while sentiment is weak. We would not really advise a tax loss strategy after a short holding period and at this time of year, but at the same time we do not have high hopes for a giant spike after earnins right now.