Q: I’m looking at starting a position in Celestica. Aggressive growth in my TFSA is the goal. One concern I have come across is the potential fraud case about Google switching suppliers. I realize these potential cases are a dime a dozen but after my recent GSY experience I am extra vigilant about potential malfeasance on the part of management, either real or imagined, as either scenario is bad for the company. Could you please offer any insight into this situation. I’m fine with short-term noise but if there’s potential for lingering issues I’d rather put the money elsewhere. Thanks for your insight.
5i Research Answer:
We would not view this as something to be overly concerned about. GOOG is likely still using CLS and demand is so high that companies need to diversify their suppliers to find capacity and this isn't unusual in the current landscape.