Topic: How To Invest

Dear Pat: I hold some shares in EXFO, and paid an average price of $5 for them. What is your view on this stock? Thanks.

Article Excerpt

EXFO Electro-Optical Engineering, $5.25, symbol EXF on Toronto (Shares outstanding: 22.8 million; Market cap: $120.6 million), designs, makes and sells testing equipment. Its clients operate networks and make equipment for the global telecommunications industry. In the three months ended November 30, 2009, EXFO’s sales fell 1.7%, to $45.6 million, from $46.4 million a year earlier. (All figures except share price and market cap in U.S. dollars). However, the latest quarter’s sales were up 24.5% from the previous quarter, which ended August 31, 2009. The company earned $0.01 a share in the latest quarter, down from $0.08 a year earlier. It should report improved results as the economy recovers, but its long-term growth prospects are not particularly strong. The stock has moved up on the latest results. EXFO is okay to hold, but only for aggressive investors. investors. …