Colin Cieszynski Celestica Inc CLS-T HOLD Jun 20, 2024

Great Canadian success story. Positioned themselves well to benefit from the AI trend and data centre buildout. Benefiting from semiconductor companies spending huge amounts. Not cheap, but not egregiously overpriced. Huge run, but earnings momentum is there. Take a bit off the table.

In general, margins for contract manufacturers are very thin. But this name's on a roll. Great space, as the world will continue to build data centres. Very strong earnings momentum. Consistent upgrades to earnings estimates, which is what you want in a growth stock. Better than 98% of companies in the S&P over last 52 weeks.

A bit stretched above MAs, may be susceptible to a miss. Reports in 11 days, and no sign that it has big risks.

We would be comfortable today as long as an investor has a 3 year+ timeframe to hold. Funamental momentum is very positive and the recent quarter showed an acceleration of growth. 
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It has done everything right the last few years. An excellent turnaround story. However, the stock is priced for perfection. Too expensive to enter. 

Lots of investors are taking profits, generally, now that earnings season is over. Needed a strong stomach for this one; in April, was under $80. He can't even recommend writing some calls, as he's been doing that and it's not working ;) He ended up having to buy the calls back, as he didn't want to get called away. 

Don't trim. Hold on, and use a stop of around $250.

It is up 260% in a year. Its business is manufacturing for different tech companies. Its numbers are very strong but its valuation is up now and there are other companies that could be coming up. Keep holding and if buying do so in tranches on pull backs.

Wouldn't buy here. Not a stock that would make her watchlist, too risky. Problem is it's linked to AI, with over 50% of revenue coming from hyperscalers. Overvalued. No dividend.

Brand-new high today, trades at 35x forward PE. Fairly attractive growth expectations going forward with 43% expected EPS growth this year, 22% for 2026, and 17% for 2027. Close to overbought with 64 RSI. If you own, hold. To get in, wait for pullback.

Have done a super job to be front and centre in data centres, both back and front end. But this is still cyclical. He sold it after a tremendous run, but left money on the table. The valuation is way at the high end around 40x earnings. This has gone from one extreme to another. 

Benefits from AI build out. Sees 6% upside.  Scores 2/10 in value, 8 in fundamentals. Buy pullbacks. The momentum is already priced in.