The “fear selling” that has “cratered” Avigilon (TSX:AVO) in the days following the departure of CFO Brad Bardua is a buying opportunity, says one fund manager.
Agilith Capital’s Patrick Horan was on BNN’s “Market Sense” Thursday to share his top stock picks. The portfolio manager says investors should be looking to buy “stuff that is in panic mode right now”.
One company he likes that fits that description is the recently beaten down Avigilon, which has spent most of its short history as a public company as a poster boy for Canada’s tech revival.
Horan says Avigilon is going through a period of “fear selling” that has detached the stock from the company’s fundamentals. He says there is a “lot of controversy” around Avigilon right now that is obscuring the fact that the company’s first quarter results were, in fact, strong.
On May 8th, reported a Q1 in which it earned Avigilon earned $8.0-million on revenue of $55.8-million, the the topline number was a 74% bump over the same period last year and earnings nearly tripled.
But investors have focused on the uncertainty around the departure of Bardua and two other executives in the past six months. The stock has fallen from a recent high of $30.15 on April 2nd to under $20. Horan says investors should use the downtick to take advantage of a fast growing tech that is now “trading at a more reasonable valuation”.
At press time, shares of Avigilon were up .9% to $19.45.