Q: I want to take a small position in Celestica:CA. Can you estimate what would be a good, great, and fantastic price. Especially in light of DeepSeek news. I know you like the company, but I've seen some reservations in answers to some questions in the past. Do you now have any hesitation, reservations? (One of the things I note is that they were around during the Dot Com days, and have survived.
5i Research Answer:
CLS does have a long history. It should be noted that it was not a very exciting stock 15 to 20 years ago. Valuation was low and it had issues with execution and growth. Growth prospects are much improved today and the company is more-focused and we think more reliable. We have other comments on it posted this morning. Buy prices good/great/fantastic could be $120/$115/$100. We would expect some heightened short term volatility. But the balance sheet is fine and very good earnings growth is still very much expected. At 22X earnings after the DeepSeek crash, it is reasonably valued now, especially compared with tech stocks in general.