Paul Harris, CFA Celestica Inc CLS-T WAIT Apr 22, 2025

Volatile recently with NVDA's results and chip worries. A bet on AI. Spectacular results. Growing quickly, reasonable valuation. He'd prefer a higher-quality US name and less of a derivative play.

What a ride since last summer, but look at the fall. Lost 50% in a couple of months. Management is great, wonderful execution. Caught up in euphoria of AI and chips -- now it's the deflation of that craze, similar to 1999-2000.

Extremely volatile chart. Second half of last year was absolutely awesome, then a big selloff down 30% in a day because of DeepSeek, and a recovery bounce back. The tumble afterward is concerning. Near bottom of his RSI rankings. Trying to come back, so far so good.

He follows this, is on his shopping list. It's a great AI connectivity stock. Their CCS segment saw massive demand in 2024, increasing market share. They project revenue this year just under $10 billion. Margins in this sector are slim, so volume is key, which CLS is good with.

They cleaned up their balance sheet and bought back a lot of shares, but when they hit on the AI data centre theme, it took off. Their last quarter was great. Growth is there and their valuation beats almost all other data centre stocks. Are growing their backlog. You can buy it now.

Tariffs are being seen to hit the tech space to a greater degree. He doesn't know why this name in particular is being targeted. Believes all the tech stocks being hit today will bounce from here, though he's skeptical about a long-term trend up.

If you absolutely need the cash tomorrow, sell today. Otherwise, wait a day or two for a bounce.

He's taking a look. Its business will have steady demand. Many companies absolutely depend on it, and that's the advantage.

Canadian manufacturing company that will benefit from AI revolution.

Its volume traded has picked up over the past couple of years as its stock has performed well, but per our rough math on a weekly basis it has been trading about 4% of its total outstanding shares. 

CLS has about 116M shares outstanding, and the average daily volume in 2025 is about 1M shares. On a 5-day week, that means roughly 5M shares trade out of 116M total outstanding. It is pretty liquid at a $13.5B market cap, and while it has declined significantly alongside the broader market, we continue to like the name.
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