Q: I have a sizable position in CLS.CA and am fortunate to have some in my TFSA. I know you can't give any sell or buy recommendations directly but as it is currently close to its one-year price target and with the recent Moody's downgrade I am wondering if a short-term drop (so trim the position) and buying it back closer to NVDAs earnings would make sense or not? CLS has a very thin operating margin as well so adds to my confusion of what to do. Any advice greatly appreciated as always!
Thanks, Lesley
Thanks, Lesley
5i Research Answer:
CLS is volatile, but we would not try to trade it based on its own quarterly results, let alone another company's. The AI trade seems back on with recent Saudi contracts and comments from mega-caps on spending. The sector is doing very well right now. CLS has beaten estimates in eight straight quarters and we would be fine holding a decent-sized position. 'Sizeable' has different meanings. CLS we like, but it is not a stock we would go all-in on.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NVDA.