Topic: How To Invest

Q: Pat: I wanted to seek your opinion on buying Celestica. It keeps rising, so I’m not sure if the wind may soon go out of its sails. Thanks.

Article Excerpt

A: Celestica Inc., $36.34, symbol CLS on Toronto (Shares outstanding: 112.5 million; Market cap: $4.2 billion;, is a contract manufacturer that makes various electronic devices on behalf of other companies. Celestica has two operating segments: Advanced Technology Solutions (41% of revenue) and Connectivity & Cloud Solutions (59%). It has over 26,000 employees worldwide, serving over 100 customers from various industries. Based in Toronto, the company has more than 6.5 million square feet of manufacturing space. The Asia/Pacific region accounts for 70% of its manufacturing operations, with the Americas and EMEA (Europe, Middle East, and Africa) accounting for the rest. On August 4, 2023, the company announced that Onex Corporation (symbol ONEX on Toronto) had sold 6.76 million of its Celestica subordinate voting shares. The sale reduced Onex’s equity interest in Celestica to 10%, but that maintains its voting control of the company. Celestica’s revenue fell 11.2% from $6.6 billion in 2018 to $5.9 billion in 2019. (All figures except share price and market…