Investment Thesis
ATS Automation Tooling Systems (ATSAF) (TSX:“ATA”) saw its EPS decline sharply due to a one-time restructuring charge. The company may continue to face some near-term weaknesses due to global economic uncertainties (e.g. the outbreak of coronavirus). However, we like its long-term growth outlook as we believe many companies are starting to establish alternative manufacturing locations outside of China. As new factories are setup, there is an increasing demand for automation facilities. Therefore, we think ATS will benefit from this trend. The company should also benefit from its acquisition of MARCO last