Celestica Inc (CLS.TO)

This stock looks great. Had a nice breakout at around $11.50. Shows lower volume, but that is typical in the summer anyways.

Not on his Stock Watch list because it had a tremendous run. You always have to watch how much compensation management gets, what the board gets, etc. Have good people on the board, but generally speaking boards always want to be well compensated.

Established an upward trend, is trading above its 20 day moving average, and it is outperforming the TSX. These three indicators all say to buy this one. But he suggests taking some profits not too far down the road.

One of the great Canadian tech companies. Chart shows a long trend from late 2012 that has been broken recently, but what is interesting is that the recent top, that took place halfway through 2013, was broken. It is kind of testing that top at $11.50-$12. Wouldn’t want to see it break that top, but so far it is reasonably healthy. If you are looking to Buy wait to see if it will hold, and then Buy as it starts to move up.

Has a bit of a more positive chart than the rest of the sector. Made several attempts to break out above $11.40, which it finally did and now it is coming back to test it. Right here at, $11.40-$11.70 is a pretty good entry point. Some of the indicators are kind of coming off and we are getting rid of some of the overbought situation.

Chart shows the stock has recently developed a downward trend and recently broke a support level. It’s underperforming the Canadian market and trading below its 20 day moving average. Technicals score out of 3 is 0. There are better opportunities elsewhere.

Info tech stocks are starting a new life in Canada and the US. This is one of them. Broke a major down trend line a while back. It was base building for 10 years and is not in an uptrend.

Pulled back a month or so ago. When you have Cisco (CSCO-Q) as a customer and it has a slowdown that is a concern. On the other side, one of their competitors had a pretty bad report. Has quite a bit of cash in the balance sheet and if you strip that out it looks very attractive on a multiple basis. Good cash generation. Feels there is a bit of room for the stock to run.

Company is more into buying back stock than dividends but that is the reason to own it. Good management team and margins continue to increase. Don’t sell.

In contract manufacturing, he has seen spots of growth throughout the group, especially the ones in the US. They get going and then they stall. He likes to see more strength. This one has a model price of $17.77, a 66% upside. Thinks we just need a little bit of confidence in those earnings plus a little bit of forward guidance as to if products are sustainable.

Was really beat up recently. A pretty big pullback. CSCO is one of their big customers. 10 times earnings excluding cash value. It is a great entry point.

There has been a long consolidation from 2011. Broke out in the middle of this year and had a parabolic move. After every parabolic move, it needs a period of consolidation. That is precisely what it is doing right now and is very healthy for the stock. If it can take the old 2011 high out, which he would bet it will, it will be very good. Wait for a breakout before buying. If you own, continue to hold.

Trying to break out but has not been able to. Resistance at 11.50 to $12.00. A long as we see it going higher it is okay.

A comeback story that has done better than expected. Has come back to the same level that it was in 2011. This is a seasonal period when you get these types of industrial stocks doing well. Right now it is in an upper trend and given where we are right now, he feels this is a favourable trend. Once it’s through the $11.90 level he expects it to do quite well.

(A Top Pick Sept 28/12. Up 66.43%.) Had a very strong quarter but was mixed in terms of their guidance. They were exiting the BlackBerry business and people were really worried if they were going to be able to replace it. However, they have started to replace it with higher margin business. Going forward, he feels their margins are going to increase. Has exited most of his position but still has some in one of his funds.