Our Chinese supply-chain management (SCM) software and service play also hasn’t had a good time of late. We’re almost back to were we advised to buy. This is disappointing, and we can’t see any reason for it, apart from the fact that this is a low volume stock that drifts with general market sentiment in periods where there is no company news (which tend to be rather long).
Unfortunately, it broke the chart though.
And this is pretty concerning. Revenue and profits are reasonably predictable (as service fees are increasing, they follow new contracts with a lag of one year, so visibility is pretty good).
We think that as we come closer to earnings (no date has been announced yet, and it will be the first time they announce quarterly earnings), the price will recover. The main risk is general market sentiment.