CVO is a small-cap AI name, which has been beaten up badly, but it does have good long-term growth. Growth has been slowing, cash flows have flipped positive, but it is fairly expensive at 121X forward earnings and sales growth in the low double digit range. We think it is interesting in being a Canadian AI name, but we are not overly impressed by its fundamentals.
CGY missed its recent earnings, and while the stock is cheap, its profit margins have fallen over the years. Free cash flows are decent, and it is making acquisitions, but its recent miss on earnings has caused the share price to fall. We think the name needs to see its margins improve before the stock price can bottom. With its negative momentum, we would prefer to wait until margins improve.