One time high-flier Avigilon (TSX:AVO) has been beaten down to levels that make it extremely attractive, says one fund manager.
Patrick Horan, principal, Agilith Capital was on BNN’s Market Call Tonight yesterday and revealed his top picks. Vancouver-based next-gen security provider Avigilon, a former market darling whose stock has fallen on hard times, was one of them.
Horan says despite the fact that the company’s stock price has stopped growing, its business hasn’t.
“This company has more organic growth than I see in the Canadian space in general,” he said. “I don’t see any other stock growing like these guys.”
The fund manager says Avigilon, which has fallen nearly in half from its January high of $34.00, may have actually transitioned its investment profile from growth to value.
“You’re getting it really inexpensive here,” said Horan. “I think its trading at 1.7 times sales, which is a discount to its peer group which is trading at 2.7 times sales, and its growing at double its peer group”.
On August 7th, Avigilon reported its Q2, 2014 results. The company earned $2.8-million on revenue of $65.2-million, up 66% over the previous year’s second quarter topline of $39.2-million.
Horan says Avigilon has been subject to the fickle tastes of the market.
“This is a case where it had “momentumitis”, now no one wants to hold it,” he said. It’s a very good time to own it, as far as we’re concerned”.
At press time, shares of Avigilon were up 4.1% to $18.63.