Investment Q&A

Q: Hello Peter and the 5I team
AVO has moved into a price that makes it very attractive for a nice move up. In my opinion in the short term there could be a 20% gain with in the next few months as the worries surrounding the management people leaving the company subside. My question is for the long term investor, what is the companies "moat"? What prevents a cheap generic company from copying their technology and bringing out a cheaper camera? Who are the competition? I always worry about Canadian hard ware tech companies not begin able to protect their margins over the long run. What are your thoughts?

Q: Are there any stocks rated B or higher that are pound on the table buys at this time for the buy and hold investor? Thank-you.

Q: re: AVO

Based on your answer to Don when he asked;

ABT-RKN-AVO -TD says all "buy" -your preference and why?

and the recent fall... is there something wrong with my thinking this may be an excellent opportunity to add to my AVO position?

Thanks for all you do

Gord

Q: What is the latest projection for AvigilonCorp now that the director has stepped down? Should we hold?

Q: re: AVO - is it the next Amaya?

Financials show no problems. Management appears to have enough confidence to reinvest significantly. It appears CEO stepping down was cause of illness.

If this is all true, shouldn't we consider AVO a buy at these levels?

Thanks for all you do

Gord

Q: Would appreciate your opinion on AVO again. The CEO - Fernandes bought 50,000 shares at market last Friday & his partner & interim CFO Jung bought 10,000 - also at market highs! Do you see anything odd at all at these transactions? Thanks Peter.

Q: Peter and all,

A pointed question on AVO: I took a small position at the end of 2013 and between the curious equity raise, the poorly handled executive exits and the rotation out of growth stocks I am down 36 per cent. But I still like the company's technology, and its most recent numbers were solid. The question: I am considering doubling down to cost average around $25. Would you do it if you were in my shoes? Or is there more rotation downside and/or taint to the stock from the various blunders?

Thank you!

Q: Re avigilon, i was told they started to capitalize the r&d , according to new accounting rules, did not tell the market, some people got spooked and some hedge funds were shorting the stock.
As for new purchases with all their cash, i am also told there is not much out there except small add ons.
I totally get that this stock is way kversold on fear etc, but could you comment on the above. Dave

Q: I currently hold AVO in an RRSP account and am down about 30%. If I had a positive outlook on the company would it make sense to sell them and purchase them back in a TSFA or margin account? My trading costs are only $5.00 per trade.

Q: Very nice to see todays bump in Avigilon . Also note that on May 9th, there was an insider purchase of 5700 shares at $20.18 which is very encouraging. Hopefully investors are seeing there is some very good value in this stock. Do you have any comments on todays bump? Tks, Bill

Q: I know you have answered a lot of questions recently about Avigilon (AVO), but I feel compelled to ask one more anyway. The price continues to drop every day with no relief. In the absence of any news form either the company or any other source, is there some price point or percentage drop at which you might simply consider it wise to cut the loss and get out? There doesn’t seem to be any buyers stepping in and at some point shouldn’t an investor give some credence to the combined wisdom of the market? I find it worrisome that in the face of the market reaction the company has not put out any type of clarification or press release that might calm investors.

Steven

Q: I took a fairly large position in avigilon 19.20, i have read all your comments, but the stock is acting like maybe the whole company is a scam and a sham.i know their earnings were good, the stock is down by half since its high, so why does this capitulation keep going on, it cannot be because the cfo resigned because of health reasons,avigilon is acting like a u.s. Stock that sometimes gets hammered way beyond what it deserves. Your comments. Dave

Q: AVO - bottom line

Obviously, everyone is out considerable (% wise) with the recent "decent after news" scenario.

If you were in our/my shoes Peter, and you down 35%, would you sell and be done with it, sit tight and take the long term view (what I want to do) or buy more at these relatively discounted prices?

Thanks for all you do Peter and Family

Gord

Q: How do you view the chances of a competitor (or another company wanting AVO's technology) acquiring Avigilon? I believe in the past you said this was probably the end result for Avigilon.

It seems to have a unique technology offering and after a nearly 50% decline in the share price it would seem like an opportune time.

Thanks.

Q: Avigilon -- The Next Generation -- I apologize in advance for this question, and I'll reprimand myself at great length later -- but I am very interested in the support pricing on AVO. I had recently requested your "great Canadian pick" for my grandson's legacy, and you had suggested this stock. Not that I don't agree with you, but at the same time I was wondering whether I should be buying now, or wait a bit longer. My TD Technicals show that AVO has an intermediate support level of $11.25 and a longer term support of $17.09. Ouch. I mean, really "ouch" (since I own the stock in my own registered portfolio and am hanging on with fingernails after 30% loss.) In any case, since I'm in for the longer term, would you advise waiting a bit -- ie. do the technicals look to you like they may actually bottom out around the $12 level. I realize you don't dabble too much in technicals, and I respect that, but still you must have come across this type of selling before, in your profession, and was wondering what your gut tells you on this one. Sorry again, for two questions in two days, but I promise I'll hide for a while after this! Thanks, as always.

Q: I own Avigilon (AVO) and would like to know how much they spend on research and development as a percentage of revenues and earnings.

Thanks

Q: Peter; From your experience do you think a lawsuit could be launched over the last new financing claiming the company knew, or should have known, a material change was coming- re the quick exit of the CEO? Thanks. Rod

Q: Hi Peter,

You mentioned some time ago that if you could one Canadian growth stock it would be Avigilon. The recent price action on the stock has been pretty frustrating for every investor. Have your views changed in any way. What should one do in a situation when the purchase price is around $30 and now it is going lower every minute as we speak. Would you recommend selling AVO and moving into something like WCP or SGY.

Q: Good Morning... I am perplexed and taking an absolute beating on my shares. I am sure I am not alone. Most people were expecting a bounce yesterday and nothing. Today we are dropping like a brick again. My question is at what point does a shareholder give up and protect at least 60% of their investment?

Q: Would you consider AVO a buy at this price?