Q: Some of us still hold CLS. It had a stellar month till recently.
Down 26% in 1 month, 16% in 3 months and down 15% on the year.
Just wanted to ask before all of the profits on this stock disappears, is it still a hold or would our money better be placed elsewhere?
Sheldon
Down 26% in 1 month, 16% in 3 months and down 15% on the year.
Just wanted to ask before all of the profits on this stock disappears, is it still a hold or would our money better be placed elsewhere?
Sheldon
5i Research Answer:
Obviously the sector and market backdrop has changed, and CLS has been hit along with most everything else. But, its last quarter and outlook were strong, and valuation decent at 16X earnings. Fundamentals do not change as fast as stock prices, at times. With a strong balance sheet, good cash flow and good earnings growth still very much expected, we would be fine holding this. The market backdrop will need to change, and there are risks of recession, but we do not think CLS is 'done' here and there is good future potential in our view.