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Celestica Inc. (CLS)
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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
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IES Holdings Inc. (IESC)
Q: You mentioned that Cls as high risk ,would you consider Hammond at the same level? And if not for tax loss which one is a better hold or what would be a better alternative to swap for Hammond if tax loss is prefered?Tks.Larry
5i Research Answer:
HPS.A is significantly smaller than CLS and thus we would consider it riskier overall. CLS has a higher revenue base and a more diverse customer base. HPS.A likely has more long term upside, but we think CLS has more short term 'bounce' potential if the market does settle down. There are not a lot of clean proxies to HPS.A. Other CLS, IESC could work.