Stock price when the opinion was issued
The stock is cheap, and the balance sheet is fine, and it is not without potential. It still pays its (lowered) dividend. It is buying back stock. We would not consider it a disaster, but it is a small company, in a struggling sector, with negative momentum, and annoyed investors (no sale and the dividend cut). The numbers are not hugely reassuring. But a sector rally would likely still move it nicely. It is up 3% YTD despite all the news. We think we would 'target' it for a sale as new ideas show up--i.e. use it a source of cash. But we do not think a sale has to be rushed, immediate, or full. Depending on one's risk profile, a small position could still be kept.
Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Generally likes the stock. Has done well, yet remains relatively cheap on most metrics. Offers growth and decent dividend. Balance sheet is strong and debt is less than 0.5x current cash flow. Unlock Premium - Try 5i Free