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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Anyone interested in charts should read “Technical Analysis of Stock Trends” by Edwards and Magee. The yearly chart of AVO is classic example and a good study for the student of Edwards and Magee’s work. I use to think of reading charts was right up there with witchcraft, however, it is really a study of investor’s reaction to the market.

A couple of noteworthy points on AVO’s yearly chart:
First is the Island formed with the Gap Up in Nov. of 2013 and then the Gap Down in May of 2014. A Bearish signal.
Second is the Ascending Triangle formed from the Gap Down in May to the first week in August. Instead of breaking to the upside, the stock Gap Down once again. A Bearish signal.
The stock did not hold the 18.00-17.50 support level and now we are seeing fear.

I entered this stock after the sell off with the CFO leaving. I had a full position by the time stock broke out ascending triangle to the downside. Once the stock broke out of the $18.00 range I was down over 20% and finally got out at $15.00 for a 30% loss. Sorry if I have sinned, but I’ve had to many long term holds over my investing career.

Al
Read Answer Asked by Alvyn on October 08, 2014
Q: Just for information CIBC downgraded AVO to $25 from $40 which is one reason for the drop. The second reason is that apparently they are facing competition from China as pointed out by a BNN guest this morning. The third reason is that I bought the stock at $17 a few days back which is one the biggest reason for the drop as whenever I buy people should start selling.
Read Answer Asked by Imtiaz on October 08, 2014
Q: With the probability of the upcoming aquisition by Transforce, what do you feel will be the resulting impact to the share price of CSS, after transaction? As a related topic, how would you compare CSS_Contrans to TMA_Trimac. I`m thinking this may be hard one to decipher and look forward to your input, as always. Thank you Peter and Team!
Rick
Read Answer Asked by Rick on October 08, 2014
Q: I would like your opinion on canexus as I see it has been badly beaten up. Do you feel this is an opportunity to enter at this time. Thank you
Read Answer Asked by Loretta on October 08, 2014
Q: Hello 5i Team

Back on August 12 you mentioned AVO had too much cash on hand which was impacting per share results. You also commented an acquisition would go along way towards providing some positive news to turn around the emotional slide which began with the executive resignation in May.

Is Mr. Hernandez still sitting on a considerable amount of cash? Has his strategy for the company changed in the past quarter or do you think an acquisition is still on the horizon?

Thanks for all you do

Gord
Read Answer Asked by Gord on October 07, 2014
Q: This is an interesting post, which I thought might help explain what's happening with Avigilon. I don't have an opinion one way or the other as I don't know enough about hedge funds and shorting practices, but it does seem intriguing, and might be of interest to those members who know more about this than I do.

http://www.stockhouse.com/companies/bullboard/t.avo/avigilon-corporation?postid=23006095
Read Answer Asked by Sylvia on October 07, 2014
Q: No news & yet stock has dropped some 25% since 9/30 to $14.04(down 11% today)Imperial Capital started coverage on Oct 3 with outperform rating & a $25 target price.Pat Horan recommend it on BNN on 9/29.Is there some negative news on the next Q leaked????There has to be a reason besides the current market drop.In my humble opinion,the co has to release some positive news on the next Q's revenue & profit sooner than later to stop the bleeding.Does AVO provide a site for investor opinion--if so, please provide.Thanks a lot
Read Answer Asked by Peter on October 07, 2014
Q: As a follow up to the discussion on Contrans. What happens to those of us who have not tendered our shares, if Transforce succeeds?
Read Answer Asked by Judith on October 07, 2014
Q: Is there any limit on the number of extensions that Transforce can request? This offer was made on Aug. 14,2014. This could take some time. Thank-you
Read Answer Asked by Jenny on October 07, 2014
Q: How do you view Trimac's potential growth from here? And valuation? Thanks.
Read Answer Asked by Michael on October 07, 2014
Q: What do you think about Contrans Group at the moment? Did Transforce successfully buy them out?
Thank you.
Read Answer Asked by Arthur on October 07, 2014