Converge Technology Solutions Corp T.CTS

Jason Donville - BNN - TOP PICK

[Possibleidiot01]

Converge Technology (CTS TSX)

Converge started out as a value-added reseller (VAR), but has expanded the services side of its business and should be seen as an end-to-end IT solutions provider. A lot of their organic growth is coming from AI workloads and advanced computing, with expectations for this side of the business to ramp significantly. Cash flow is very strong with management guided toward a 75 per cent conversion of EBITDA to free cash flow. They have been using cash to buy back shares, which has been highly accretive since the stock is traded at such a cheap multiple.

Owned
 

TOP PICK

Converge Technology Solutions(CTS-T)

12/03/2024

 

Unlike Nvidia, CTS trades at 5.5x PE. Has a lot of upside where profits are growing faster than revenues.

(Analysts’ price target is $6.66)

Technology

 

N/A

Owned

 

[Steelfan26]

Wow , good to see Mr donville back since the his valeant debacle .. that said.. great for converge owners , he's a very good stock picker ..

[retiredcf]

First stock in the clip; he and his family also own it personally. GLTA https://www.bnnbloomberg.ca/video/jason-donville-s-top-picks~2883894