Sell Half of Endava (DAVA)
This morning we found out that Endava (DAVA) has postponed its Q4 earnings report from tomorrow (September 23) until next Tuesday (September 28). The stock is down around 6% on the news. Now, it very well could be that this delay is due to non-material events. Maybe some numbers just needed to be double checked, some accounting methods are changing that aren’t a big deal, or there was some logistical challenge in pulling everything together. Or, there could be some figures that need much more scrutiny or there is some issue with how things are being reported. It could also be that there is a major acquisition in the works or that Endava is selling itself. We just don’t know. What we do know is that these types of delays cause concern, and sometimes for valid reasons. To balance out some of the potential risks let’s go ahead and sell half our position. We’ll net a gain of just over 50%, then we’ll evaluate what to do with the other half after next week’s report. SELL HALF, HOLD HALF
