Q:
Greetings,
I bought OTEX at $53. near the begining of the year. Its around $31. now. Should I sell or hold.
Also LVLU was bought in earl January of this year at $28. and has been quite a loser since. Seeing its hovering around $12. today, should I sell this one fast?
Thanks you.
Greetings,
I bought OTEX at $53. near the begining of the year. Its around $31. now. Should I sell or hold.
Also LVLU was bought in earl January of this year at $28. and has been quite a loser since. Seeing its hovering around $12. today, should I sell this one fast?
Thanks you.
5i Research Answer:
The momentum hasn't been great at OTEX and software is in the dog house in terms of sentiment but at 5X earnings and with earnings growing in the mid-sigle digits we would be reluctant to sell at this stage. The company does need to get the top line growing a bit more consistently though to get investos interested again. If there is capital losses that can be triggered, that could make sense as we might not expect things to really get moving for the name in a 30 day period.
With a $32 mln market-cap, we are not too familiar with LVLU but momentum is not great and operating cash flows have ben negative for the last few quarters. We would be fine with selling.