Aug 072014
 

Someone I work with told me yesterday about a company that designs and manufactures video surveillance equipment and software called Avigilon (TSX:AVO)

14-08-avoprice

He said he knows a person who knows another person who has worked directly with AVO and thinks the stock is very undervalued right now. The company is expected to announce their quarterly financial results very soon. My co-worker believes AVO’s numbers will beat the street’s expectations and the stock will make a nice jump 😀

Of course I’m a pragmatic investor who conducts careful and thorough research before buying any stock, so after my co-worker told me about it I decided to purchased 50 shares of AVO this morning at $25.64/share 😀 I just can’t pass up the opportunity to make a quick profit if he’s right and AVO does go up! The total purchase cost was $1,282. I had $1,000 of savings lying around so I used that, and borrowed the remaining balance on margin.

Initial Investment: $1,000.
Leveraged up to $1,282 ($25.64 x 50 shares)

14-08-avobuy

The company doesn’t pay a dividend but it is growing fast. AVO’s revenues are currently increasing at a rate of 60% a year. It has a pretty high P/E ratio of 39 x but it’s well justified given the company’s growth rate. Short term technical indicators are also promising which is favorable to a swing trade.

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I’m hoping to make at least $200 in profit on this trade which would be a nice 20% return.

Here are the reasons I think AVO is a good buy right now for me.

  • My co-worker is bullish on this stock
  • My very smart online friend, Phil from Ontario, likes this stock
  • Bullish momentum, MACD, and other technical events
  • Based in Vancouver, because I like to invest in local companies 😀
  • The consensus from stock analysts is a strong buy.

Will I make some easy money out of this or will AVO disappoint and eventually lose its competitive edge like BlackBerry? Who knows. Acting on a stock tip is pure speculation (lots of risk) but life is short so let’s make it interesting 😉

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Random Useless Fact: 

This bathtub is cut from a single slab of quartz and costs $1 million. The block of the purest white rock crystal was discovered and quarried in Brazil.

14-08-bathtub

 

 

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Tawcan
Guest

Funny you mentioned AVO… I know a few ppl that started the company. They did quite well with the stock IPO. Good luck with your purchase.

Asset-Grinder
Guest

hope u make some gains. I would hush down on the insider info tho lol. Securities commission cracked down on a buddy i know for some inside info and he got fined heavily.

Phil
Guest

I’m blushing… I do own some of this stock, and have for a while. It is one that I feel has further potential, but it has had a bit of a wild ride since last Fall, and has not yet fully recovered. I’m up 21.8% since I bought my last few lots in mid May. If you are into these types of stocks my favourite on the year is PHO, which is up 115.7% this year, or one I jumped out of too early AYA, for which I’m waiting for a drop to buy back into, potentially… The key for me with these types of stocks is hitting a short term low to get a good buy in time, market timing, which I’ve been told usually does not work, but since I don’t work either, I’ve got time to time it :). Fortunately for me these higher fliers have balanced off a few of the duds I held earlier in the year NCI, PYR, and XX… and let me be clear for Asset- Grinder, I’m no insider, just an at home dad with some time on my hands, just in case you were wondering – Cheers.

Phil
Guest

BOOM!
Second Quarter 2014 Financial Highlights
Revenue was $65.2 million, an increase of 66% over Q2 2013 revenue of $39.2 million.
Gross margin percentage was 55%, up from 53% a year earlier.
Adjusted EBITDA* was $8.7 million, a 61% increase over Q2 2013 Adjusted EBITDA of $5.4 million.
Net income was $2.8 million, compared with net income of $3.4 million in Q2 2013.
Adjusted Earnings* was $5.7 million, a 49% increase over Q2 2013 Adjusted Earnings of $3.8 million.
Fully Diluted Adjusted Earnings Per Share* of $0.12, compared with $0.10 in Q2 2013.

Phil
Guest

Downside I should add is they missed expectations by $0.04… which means even though the numbers look awesome, growth may be slowing… I will continue to hold, but like I said initially it’s been on a wild ride since fall… – cheers

Wealth Builder
Guest
Wealth Builder

Hey Phil
What are the names of the companies:
PHO
AYA
NCI,
PYR,
XX

Phil
Guest

PHO – Photon Control AYA – Amaya Gaming NCI – NTG Clarity Networks PYR – Pyrogenisis XX – Avante Logixx I hold many others, as I like to attempt to beat the market each year. I have a stable base of stocks which return more or less what the TSX does, but these are the ones I “play” with to ensure I stay ahead of the curve… Take PYR for example, In January I bought and sold PYR over a couple of days and made a 100% return following the trend… that said, I’ve got time, so it was nice. Now most just cannot do this, or want to for that matter. take AVO for example.. with todays drop I’m bidding for a few extra lots today at what I believe will be a discount. A few other nice ones DHX (DHX Media), BYD.UN (Boyd group), WCP (White Cap resources… I realize I might be all over the map, but I have set up my criteria for what I look for in companies, and I also very little of other peoples money, so if I lose, it only hurts me and my pride and not my future potential. Investing is… Read more »

Wealth Builder
Guest
Wealth Builder

Appreciate your response,Phil.It is very helpful.

Wealth Builder
Guest
Wealth Builder

Can you please suggest any online free charting software that shows hourly movements.I am aware of “stockcharts”, but it does not provide hourly moves.

Phil
Guest

Sorry, I do not use any, other than my online broker account. BMO Investorline provides me real-time quotes, so I can see what’s happening when I place my orders… Liquid may know of something out there… At one time I did use Stockhouse, which upgraded there services a year ago or so, which unfortunately drove me away from them. A lot of BS on the Blogs (boards) there, but I know they have data showing buys and sells with lot sizes and pricing. – Cheers

chris
Guest
chris

Wow! Huge dip! $19.75???

Phil
Guest

Yep, but I did buy more at $20.10… I’m still up on my initial investment… BAD, was my bad one today though, as it took a huge hit, but again since I’ve owned it for almost 2 years now, it is still positive on my investment. Drops are time to evaluate if share price is still reasonable or based on a company falling off the rails… You always need a long term perspective. Bummer though, as it is always nice to lock in returns before the drops… – cheers.

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[…] is what average down does. When I bought AVO in August the average cost I paid for each share was $25.64. However the stock was recently down about 40% […]

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[…] few years ago I bought 50 shares of Avigilon Corp (TSE:AVO) at a price of $25 per share. Avigilon is a surveillance and security company based in […]