Investment Q&A

Q: Another AVO

I bailed out wen it hit $14, unfortunately the bottom. I am used to these type of drops because I have had drug stocks that do that on a regular basis when they do not get to phase 2. Sino forest, which I held a few years ago, I rode all the way down to 0. I've learned over time, the market knows best if a stock is under performing. People closest to it know it best and they are selling it. I will cut my losses if it gets 10% below my purchase fee or if it has risen a lot and starts to lose momentum. What is your opinion?
Dennis

Q: Would it be a wise move to sell both CSS and CFN now as any gain now is limited and add to AVO with this dip.

This move would represent about 2% of my total portfolio.

Thank

Q: Just a comment on gaps: according to A.J. Monte of The Market Guys 80% of these get filled back in eventually so if you're bullish on AVO a reasonable target (to recoup some losses?) might be $25 where it gapped down from to $22 in May. $25 is also where the 200 day moving average is currently so it's not an unreasonable destination to look for. First though would be to break up over resistance at $17.50.

Q: Hi Peter, sorry one more question regarding avo. Your thoughts on Margaret Herndon as the new vice president.

Q: Anyone interested in charts should read “Technical Analysis of Stock Trends” by Edwards and Magee. The yearly chart of AVO is classic example and a good study for the student of Edwards and Magee’s work. I use to think of reading charts was right up there with witchcraft, however, it is really a study of investor’s reaction to the market.

A couple of noteworthy points on AVO’s yearly chart:
First is the Island formed with the Gap Up in Nov. of 2013 and then the Gap Down in May of 2014. A Bearish signal.
Second is the Ascending Triangle formed from the Gap Down in May to the first week in August. Instead of breaking to the upside, the stock Gap Down once again. A Bearish signal.
The stock did not hold the 18.00-17.50 support level and now we are seeing fear.

I entered this stock after the sell off with the CFO leaving. I had a full position by the time stock broke out ascending triangle to the downside. Once the stock broke out of the $18.00 range I was down over 20% and finally got out at $15.00 for a 30% loss. Sorry if I have sinned, but I’ve had to many long term holds over my investing career.

Al

Q: Just for information CIBC downgraded AVO to $25 from $40 which is one reason for the drop. The second reason is that apparently they are facing competition from China as pointed out by a BNN guest this morning. The third reason is that I bought the stock at $17 a few days back which is one the biggest reason for the drop as whenever I buy people should start selling.

Q: It is interesting all the questions and comments on avigilon. It seems like a large part of your membership owns shares and that membership is almost all retail, so is it possible it is that membership doing the selling in avo. Dave

Q: Can you advise the the next quarter financial release date.
Thanks John

Q: Hello 5i Team

Back on August 12 you mentioned AVO had too much cash on hand which was impacting per share results. You also commented an acquisition would go along way towards providing some positive news to turn around the emotional slide which began with the executive resignation in May.

Is Mr. Hernandez still sitting on a considerable amount of cash? Has his strategy for the company changed in the past quarter or do you think an acquisition is still on the horizon?

Thanks for all you do

Gord

Q: This is an interesting post, which I thought might help explain what's happening with Avigilon. I don't have an opinion one way or the other as I don't know enough about hedge funds and shorting practices, but it does seem intriguing, and might be of interest to those members who know more about this than I do.

http://www.stockhouse.com/companies/bullboard/t.avo/avigilon-corporation?postid=23006095

Q: No news & yet stock has dropped some 25% since 9/30 to $14.04(down 11% today)Imperial Capital started coverage on Oct 3 with outperform rating & a $25 target price.Pat Horan recommend it on BNN on 9/29.Is there some negative news on the next Q leaked????There has to be a reason besides the current market drop.In my humble opinion,the co has to release some positive news on the next Q's revenue & profit sooner than later to stop the bleeding.Does AVO provide a site for investor opinion--if so, please provide.Thanks a lot

Q: Since the tumble from $18 for AVO volume has been 2X average except for Monday when it was 4X. It certainly seems someone knows something negative here, or thinks they do, and sellers are gaining the strong hand. Could you provide a current short position on the stock, and do you have any comment on the Point and Figure chart target of $9? Thanks, J.

Q: AVO continues to tank today. Should I hang in there? It is sure painful watching this thing slide.

Q: Any current information on the cause of the price decrease? Catalyst or negative news?

Q: It's down again today(8%) on heavy volume and the towel is ready to throw itself in. Is there any significant insider selling on this stock?
Thanks

Q: AVO recently released a series of information on its products.But the stock continues to drop sharply,some 5% today.Pat Horan recommended it as one of his top picks on Sep 29 on Market Call Tonight.Its CEO has to realize that growth & product enhancement have to be accompanied by corresponding growth in profit.Todate I have lost $9 since purchase prior to release of last Q results.Your advice on whether I should sell now Thanks a lot

Q: I am down 34% with AVO, but I still like the growth story. I would like to buy more to bring the holding back to a full position now that the price is under $18. Would you add to my holding at this point or would you wait until after tax loss selling?

Q: Hi Peter and Team,
I hold full positions in the model portfolio except AYA, DSG, FSV, G, MG, SYZ and T. I hold full positions in BEP.UN, SLF, and SGY. I hold what started as full positions in AVO, DHX, TOU, BAD and QST. Thanks to your guidance my portfolio is up. I’ve trimmed some winnings down to full positions and would like to re-invest.
My question is more specifically on AVO (down 35%) and BDI (down 30%). I’m very concerned about AVO.
I am somewhat considering topping up on AVO and/or BDI back to full positions. I was also considering selling one or both ......or keep holding them and invest in 1-2 names in the model portfolio that I don’t already own?
Are you comfortable with AVO and BDI at this point in time? What 2-3 names would you recommend from the model portfolio (or outside the portfolio) if I were to buy new positions? I am a long term medium risk investor. Your guidance as always is much appreciated.
Thank you for the service you provide. It is very well worth it and you’ve helped me with my investing.
Best Regards,
Marco

Q: Hi Peter,

AVO took a beating when the CFO suddenly left immediately before earnings were released in May for "health reasons". It is now four months later and the company has yet to announce the hiring of a permanent replacement. Smells a bit fishy to me. Is this long delay a further cause for concern for AVO shareholders? How long should it take to hire a qualified and suitable CFO???

Thanks for the reply.

Q: Can you provide the % of US sales for these 2 growth stocks. Presumably the weak CDN $ could give earnings a nice boost. Currently building positions.
Thanks