Replies to post #121157 on Savvy Trades and Investments

[researcher59]

Nice trading on WU and DIN !

[SSKILLZ1]

IMXI

I brought a small position in IMXI on friday at $17.99. here is what I like.

1) The company is now looking for strategic alternatives, although there are no guarantees on anything. I generlly see this as a plus.

2) I was admittingly down on the company after q2, but q3 was much better. And I expect q4 to be pretty good as well. Based on Beginning of the year guidance of $2.13-2.31, I fully expect them to come with in that range. And expect another Positive comp on the earnings front. I think they should get a 10 PE, but that is my take.

3) The company is one of the most aggressive company I've seen Buying back shares, and thanks to there cash flows and earnings they could continue to be aggressive which will be very accretive to earnings in the upcoming periods.

4) Company has a good Track record of Growing earnings

 
 FY 24 $2.13-2.31 Estimate. 
 FY 23 $1.95 
 FY 22 $1.81 
 FY 21 $1.47 
 FY 20 $1.10 
 FY 19 $0.87 
 FY 18 $0.72 
 FY 17 $0.62 
 

As one can see from that chart, that is a excellent consistency of growing earnings per share.

5) I think the stock Should earn somewhere between $2.50-2.75 Next year (FY 25), Technically we are allready in fy 25. Hence I feel FV is in the mid to upper 20's.

6) Stock is oversold with a RSI sub 27, support in the mid to upper 17's. I think the risk/reward is in my favor here, but time will tell.

Conclusion: I will buy more of IMXI on weakness, I think it offers a compelling valuation story, with a great track record of eps growth, aggressive stock buyback, with the possibility of maybe strategic alternatives becoming a positive factor, combined with buying near the low end of the range, getting near support, with the stock being oversold. Time will tell. But this is why I like IMXI. All is just my opinion, and I could always be wrong though.

[SSKILLZ1]

SSKMP Trades

Buy 1,000 Shares of DEA
Buy 100 Shares of ZBH
Buy 300 Shares of VTRS

Note that this is a fictional portfolio and is not a recommendation to buy or sell securities