RE:Possible Reasons For DeclineThe REAL possible for the decline is that Murray Wealth Group put on their site that they heard CTS will miss estimates on the high side. Then they took it down after the drop.
I emailed the company and they said there is no such leak.
AlwaysLong683 wrote: 1) CTS Financial Statements dated June 30, 2022 (see SEDAR):
- Too much debt, which can be devestating to small cap tech companies in a rising interest rate environment.
- Goodwill (422M) represents 24% of total assets1751M). This is what happens when a company is a serial acquirer of other firms. Writedowns in future.....?
- Shareholder dilution (26% more shares outstanding in one year):
June 30, 2021: 171M shares outstanding
June 30, 2022: 215M shares outstanding
2) Other Canadian small cap tech stocks still down more percentage-wise than CTS from their 52W-Highs . Now it may be CTS's turn to drop some more, whether justified or not....?
3) Tax loss selling has begun.......?
Just theories I know, but I wouldn't be surprised if CTS fell further from here.
This is why I do not like "roll-up" companies that go on buying sprees of other companies. More cash is spent and/or more money is borrowed and/or more shares are issued while Goodwill grows.
We shall see.....