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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (75375)	4/3/2024 7:34:08 PM
From: E_K_S	Read Replies (2) \| Respond to of 78731

RE: Concentrix Corp (CNXC) Concentrix Corporation provides technology-enabled business services. The company serves technology & consumer electronics; retail, travel & ecommerce; banking, financial services & insurance; healthcare; communications & media; automotive; and energy & public sector. Concentrix Corporation is based in Fremont, Calif. I sold the last of my shares 11/02/2022 at $120/share. Have not really followed the company since then. -------------------------------------------------- Their value metrics look attractive selling at a 5.8x Forward PE; However, intangible assets totaling $7.8 Billion is quite high Shift Towards Intangible-Driven Business Models: 2 3 4 The search results suggest a broader trend of increasing importance of intangible assets across industries. This shift towards more intangible-driven business models likely benefits Concentrix as a CX services provider, allowing them to build up their intangible asset base. You are probably aware of these metrics already. From my AI search: Acquisition/Merger In September 2023, Concentrix completed a combination with Webhelp, another global CX solutions provider 4 This is Positive as far as AI Services: "Concentrix's focus on technology-infused services, and AI integration is a crucial aspect of its growth strategy." Specifically: Concentrix is deploying AI solutions internally for recruiting, workforce management, smart assist products, and quality automation platforms. This helps streamline processes and improve operational efficiency. The company is also actively collaborating with clients to "design, build and run generative AI solutions." For example, they have achieved 35% efficiency gains and delivered releases 30% faster for a technology client through their AI initiatives. 1 2 The search results further highlight Concentrix's use of AI across various aspects of their CX operations: AI-based learning bot simulations AI-powered quality automation platforms Cognitive AI bots for client-specific implementations 1 Concentrix is focused on "deploying AI tools across a significant portion of its legacy operations business by year-end," demonstrating their proactive approach to adopting and integrating AI technologies. -------------------------------------------------- YES this DEBT level is pretty large Again AI summarizes their Debt History over the last five years. At the time of the spin-off in 2020, Concentrix had a relatively strong balance sheet with moderate debt levels. Over the past 5 years since the spin-off, Concentrix's total debt has more than doubled from $2.22 billion to $4.94 billion as of late 2023. The search results do not indicate whether Concentrix has been able to reduce its debt levels over this time period. The debt appears to have increased, potentially through acquisitions and growth initiatives. Concentrix has taken on a significant amount of debt since the spin-off, though the specifics of how this debt has changed over the past 5 years are not clearly detailed. ------------------------------------------------------------------------- Maybe Paul Senior or others have an opinion. I will add to my watch list. FWIW: I started a small position in Genpact Ltd (G) for their potential use of AI in their service business. If you can find the right company that can utilize AI effectively, it would help the company be more efficient especially for their customers.