# Avigilon Corp. (AVO)



## AnonymouslyInvesting (Nov 29, 2016)

*TSE Symbol:* AVO
*Price: *$12.35

*Recommendation: *BUY - Speculative

*Company Description
*Avigilon is a leading provider of business intelligence and security solutions through high definition, server-based video surveillance. They designs, manufactures and markets cameras, recording hardware, and software. AVO operates in North America, Europe, Middle East, Africa, UK, Asia Pacific and Latin America.

*Most Recent Quarterly Reporting*
AVO beat Q3 expectations on higher volumes. Operating expense growth decreased, resulting in significant earnings leverage.

*Investment Thesis*
AVO has revenue growth well above its industry levels and has a leading portfolio of patents to help maintain that growth. Their valuation has almost never been this low, creating an opportunity to purchase a high quality, high growth, internationally diversified company relatively cheaply. Their historical P/E ratio is on my website and is trading just over 1 standard deviation below its historical average.

Newer generation products have had a profound positive effect on gross margins that are converting top line to bottom line growth.

There are some significant risks (highlighted below), which warrants our ‘BUY – Speculative’ rating.

*Risks*
Growth expectations have moved up and not meeting consensus targets could cause adverse price movements. Loss of key personnel would have a significant impact on operations. AVO is positioned as a value player, offering good products at competitive prices and failing to introduce new products at low cost-points could decrease sales. The surveillance market is highly competitive. FX is also a risk.


What are your thoughts?


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## AnonymouslyInvesting (Nov 29, 2016)

There have been some concerns around advice. Do not consider the prior post to be advice, and simply an opinion as of the date of posting only. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn.


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