Stockchase InsightsHave been off line for two weeks so just catching up. GLTA
BUY on WEAKNESS
Converge Technology Solutions(CTS-T)
15/02/2023
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.
Stock was $3.70-ish prior to the rumour/confirmation of the strategic review.
The tech world has changed to the positive since then, fairly dramatically.
But the recent miss needs to be taken into account as well.
Plus, we need to believe management that the three big deals are on their way.
Currently 13X earnings, we think a proper multiple without all this 'noise' would be in the 17 to 18X range.
So assuming growth, and using forward consensus estimates, that gets us to $8.28, so on a present value discounted basis about $7.50 with no control premium applied.
Technology
Stockchase Insights
$4.980