Q: I am a long-term dividend growth investor. I bought CGNX because it is debt-free and a leader in machine vision technology. I expected it to benefit from growth in the industrial automation sector. I also thought there was some possibility of it being acquired by a larger player in the IA sector. However I have been disappointed in its performance over the last twelve months as its growth seems to have stalled. I am considering switching to CNR, still in the industrial sector, but benefitting from overall industrial growth with less volatility. Would you hang in with CGNX for the long term or would you switch to CNR? I am also considering a sector switch to GOOGL which seems to have much better growth and ROIC than either of these companies. Which is the better long term investment?
5i Research Answer:
Things have certainly stalled for CGNX with the stock down nearly 11% over the last year as...
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in GOOG.