Celestica Inc (CLS-T)

Analyze companies day by day, ask if it's still meeting expectations. He owns this one in his Canadian portfolio, and in his US small-cap. Last week, it reaffirmed 2025 growth expectations. More than 1/2 its business is directed at data centre development. Parabolic move, but fundamentals have also grown very well. Valuation still undemanding. 

Keep an eye on it, and don't get carried away with price momentum. Trim if it gets too big a position in your portfolio. There's a difference between a trim (portfolio management) and a sell (based on fundamental value).

It continues to work, even weathering the DeepSeek storm earlier this week. His only concern is on the semiconductors, SMH and SOXX. This name is part of that group, and the group is lagging the broader market. If the broader semi space comes under pressure, CLS will likely follow suit.

CLS traded at a forward P/E of below 10X for years until 2023 when its AI segment began generating significant growth. Its forward P/E has climbed to 24X, and for a company with steady margins and expecting to grow earnings in the 20%+ range for the next couple of years, we believe a forward P/E in the range of 20X to 25X makes sense. A 30X forward multiple could be justified if management guides for higher growth rates and it can execute on expanding its profit margins. Much of this also depends on the sustainability of the AI story and if we eventually witness a CAPEX down cycle for data centers and chips. Overall, we continue to like the name here.
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His 12-month price target is $138, and today we're at $143. Today's reporting is going to have to be pretty spectacular, or it's going to encourage more selling. Up$7 today. He'd take 1/4 or 1/3 off right now.

Makes all kinds of support products for AI chips, if not the chips themselves. For example, all GOOG's data centres use its technology. Totally comfortable owning it now for a 2-3 year ride. Buy high, sell higher.

Lots of opportunity. Ability to monetize AI has really helped customers. Going gangbusters. Runway is far out, both on fundamentals and on price.

He's wanted to own this for a while. They provide supply chain solutions, which is topical. Now, the price is too rich. Earnings are coming up, so wait for that. 

An amazing chart, but be cautious adding at current levels.

Definitely volume on this name. Note that the recent move is parabolic. So you want to look at the stock over its 200-day MA; don't want to see much more than 15%. 15-20% over the 200-day is getting into overbought territory.

Up is good and down is bad, but when you see this kind of an up, expect a pullback. So you draw a new trendline, and the stock will probably retrace close to (if not actually right to) it. A reasonable retracement level might be $110-120, but this is not an iron-clad prediction. Overall trend is up, doesn't see a problem with the chart.

Solid fundamentals. Healthcare solutions will pay dividends going forward. Not a bad valuation for a long-term play over the next 5 years. 

Can't really do technical analysis on a chart like this, as there's no real pattern that's taking place. Doesn't think year-end profit-taking will weigh on the stock.

Pitfalls would include chasing or buying too much. Other risks are not following it and not having a plan. Acceleration is really strong. Good volume along with the buying, which is supportive. Reaching a bit of a limit right now, which may be profit taking, and may pull back to $110. A drop below $105 with a full position is a problem.

It has changed a lot and starting to focus more on helping clients develop new projects. It is riding the AI boom and has just passed the old high from23 years ago. Has had a very low multiple for a long time. It has started to execute better, grow faster and meet expectations. It is quite cheap in terms of tech stocks and should do quite well from a momentum standpoint.

Probably overbought here, up 240% in last 12 months. 21-22x forward earnings, 15-16% EPS growth rate. Not really expensive. Likes it.

Keeps going up. Business has totally morphed into value-added parts in the semiconductor space. Riding the wave of massive growth of all chipmakers. Valuation seems reasonable. Remember that semis are cyclical; ASML, for example, went down 20% yesterday. Hot stocks always have potential to re-rate.

Quite well run, but not ready to be there. His preference is TSM, but its valuation is not attractive either.