Converge Technology Solutions Corp T.CTS

RE:RE:Price

[AlwaysLong683]

jsg335 wrote: To be honest nothing.  I thought the last 2 quarterly results were good and both times the stock got hammered.   It's bizarro world these days, I can't understand how a potential buyout with decent reports recently gets absolutely no love.  It's almost as if some entity is walking down the price possibly?  Maybe in order to buy it out at a lower 7 number?  Maybe I'm crazy, but it makes no sense. 

My hunches re. the dropping CTS share price:

1) CTS carrying too much debt in a higher interest rate environment wtih interest rates in both Canada and the USA unlikely to be cut anytime soon.

2) Goodwill component of Assets likely overstated.

3) Increased costs to CTS for the products they assemble / acquire from suppliers given inflation.

4) Higher interest rates and inflation making it harder to acquire new customers who may not be willing to make changes to their existing IT systems as they are tight on cash.

5) Lack of a decision by the Special Committee on the strategic review. The longer it takes, the more the market is convinced the company will not be taken out and thus have to deal with the above alone. Strategic review announced Nov 22, so it's been five months and still no decision.