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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: Hi 5i: With respect to the question asked by Dennis about AVO buybacks: I recall reading quite recently a statement by AVO to the effect that the AVO board figured that their shares were undervalued, and that they therefore planned to support their shareholders by doing a series of buybacks. In other words, they have been up-front about their motivations.
Read Answer Asked by Roland on June 16, 2015
Q: Good Morning Peter, Ryan, and Team,
I noticed this morning that, according to AVO's most recent Ink Insider Report, 563,400 shares have been repurchased at an average price of about $17.50 so far since May 14, 2015. Avigilon raised $100 million back in April, 2014 at $29 per share. Aside from alienating those people who purchased shares at $29 do you think it makes sense for a company in hyper-growth mode to use their cash to buy back stock when the company is not generating any free cash flow on an operating basis ??? (using data from TD Direct Investing) Your opinion would be greatly appreciated. Thanks, DL
Read Answer Asked by Dennis on June 16, 2015
Q: In an answer posted today, you stated that you thought AVO qualified as one of the more unfairly beaten up companies that you follow.

However,today we see that the EVP of Engineering has now resigned, continuing the revolving door policy at the company. As much as you, and other analysts I respect, still extol AVO's virtues, is it yet time to say enough is enough and for me to sell at a substantial loss and move on? Or is this the price you pay to get in on a high growth company?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on May 12, 2015
Q: Hi 5i: RBC Direct Investing provided a report on Avigilon that quoted an analyst to the effect that security cameras have now become commoditized. Cameras sold by Chinese firms such as Hikvision, Vivotek and Uniview now sell for 30% - 40% less than the cameras sold by Avigilon. It may be that these cameras lack the supporting software provided by AVO and that it is this support feature that gives AVO an edge and that makes up for the difference in price. Do you have any information on this aspect of the comparison. But if it comes down to a simple price war between hardware vendors then I don't fancy AVO's chances
Read Answer Asked by Roland on May 10, 2015
Q: Is there a good possibility that Western based companies are subject to a discount simply due to the fact they aren't high on the analysts (mainly in the centre of the universe) radar every day? The big discount is hard to justify but certainly AVO does not seem to grasp the significance of "selling" their story to investors. They diverted attention with the announcement of building purchase this quarter and mismanaged a personnel manner in a recent quarter.

Phil
Read Answer Asked by thomas philip on March 05, 2015
Q: Good Morning Peter, Ryan, and Team,
This morning it was reported on BNN that a larger competitor of Avigilon, "Axis Communications" of Sweden, was purchased by Canon of Japan. The price paid was $2.83 billion US. From a pure technological perspective Avigilon appears to have the best end to end mouse trap. How do you think this transaction will affect Avigilon going forward and do you think that AVO may end up being acquired by someone as well ??? Thank you for your wisdom and insight. DL
Read Answer Asked by Dennis on February 10, 2015
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