Q: Hi, Celestica stock declined sharply, 5.5% in Thursday's trading. Following an afternoon reversal of many high flying semi names, the peripherals also followed suit and lost ground. Do you think, CLS's drop was also simply sector related or it had something to do with company's announcement of upsizing their Bank Credit facility to $1.5 Billion ?
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5i Research Answer:
It was quite a weird reversal day on Thursday and also today is triple-witching expiration. CLS's balance sheet is very strong and we doubt the credit facility was the reason for the weakness. Profit-taking and overall sector weakness would be our bet here on the reasoning.