Topic: How To Invest

Q: Pat: I own shares of Avigilon. Do you think they’re worth holding? Thank you.

Article Excerpt

A: Avigilon Corp., $13.37, symbol AVO on Toronto (Shares outstanding: 43.5 million; Market cap: $585.1 million; www.avigilon.com), designs, makes and sells high-definition surveillance systems. Users can view the closed-circuit images and footage on computers, tablets and smartphones. The company first sold shares to the public on November 8, 2011, at $4.50 a share. The U.S. is Avigilon’s biggest market at 60% of its overall revenue, followed by Europe (25%), Asia Pacific (6%), Canada (6%) and Latin America (3%). The company’s revenue jumped 515.3%, from $60.0 million in 2011 to $369.4 million in 2015. Earnings soared 817.6%, from $3.8 million in 2011 to $35.1 million in 2014. Due to more shares outstanding, earnings per share rose at a slower rate of 442.9%, from $0.14 to $0.76. In 2015, Avigilon’s earnings fell 19.6%, to $28.3 million, or $0.61 a share. The company invested heavily in its operations, including hiring more salespeople and building a new plant in Texas. As a result, its operating expenses jumped 33.8% in…