Q: Hi,
Thinking of consolidating two smaller positions into one. Can you give me your preference between Celestica and Converge for a three-year hold, with a brief rationale. Thanks!
Brad
Thinking of consolidating two smaller positions into one. Can you give me your preference between Celestica and Converge for a three-year hold, with a brief rationale. Thanks!
Brad
5i Research Answer:
CTS is cheaper, but CLS is much larger and likely positioned better for growth as the tech sector ramps up further. Both have strong expected growth, and it becomes a question of small cap vs large cap, really. CLS has better momentum, and both have good balance sheets now. CTS might have more potential over a longer period, but for a relatively short period as noted in the question we would side with CLS.