CAE Inc (CAE.TO)

(Top Pick Dec 13/13, Up 18.68%) He got concerned about margin pressure they were feeling, but they have recovered since. Definitely a good company and heading in the right direction.

(A Top Pick March 18/14. Down 2.77%.) There are not a lot of aerospace choices in Canada. He had picked this one because it was a pure play. Thinks that very soon we are going to make another 52-week high, and then we get a clear breakout. A weaker Cdn$ will probably help.

Likes this because it is a Canadian quasi-tech story that basically feeds into global markets, both from the simulator side and from the training side.

(Top Pick Oct 2/13, Up 22.92%) He ended up selling after it put in a lower low, $13.50 about a month ago.

(Market Call Minute) It’s promising, but never comes through.

Likes it. They have a very good business model that will work really well in the current environment. Simulators. There is a very good aerospace cycle going on. This should propel them to do a lot better here. It is a perfect setup here. Management has a new sense of religion about returning capital to shareholders through dividends. It is a good deal at these levels. Hang in for a couple of years.

Aerospace is one of his dominant themes. The pickings are thin in Canada. This gives us exposure to commercial as well as defense.

Has strong seasonality around the times of the big air shows. After that there are new announcements about new jets and the stock has a difficult time. The best time is from October until June historically. But now we are in the period of seasonal weakness.

He had bought the stock at $11 and it did what he wanted. However, it started to break down early this year. Earnings came out recently, and they weren’t bad. However, the guidance was kind of mediocre. Because of this, he sold his holdings.

Recently announced about $120 million in new training contracts. They also announced about $110 million for the military side in New Zealand. They continue to gain new business, whether military or civil space. Yield of 1.7%.

Likes this. Technically it got overbought in March. Was surprised that it hadn’t had a bit of a pullback before now. This is finding support just under $14. Stock is relatively safe because the big breakout that happened is a strong, solid breakout because it had been consolidating for several years. Feels the stock, over time, could go considerably higher, as much as into the $20 range.

One thing this has going for it, versus Bombardier (BBD.B-T) is that it is a little more diversified. They have simulators sales and training on them as well. In multiple geographies. He likes that they are multi-industries as opposed to geographical.

He would like to be able to get this at $13. Has really stalled out so far this year. Things are going well for them. Flight simulator sales are going well. Thinks there are still concerns on the military side. Good company and they operate well.

Likes this. It’s in a good space. This is a company that has a bit more exposure to the economy. A little more volatility, but it is going to be able to grow. Specializes in simulators and flight training with the civilian and military markets. They continue to win contracts. Yield of 1.6%.

Likes this a lot. There are a couple of things that bode well for them. Senior pilots on senior aircraft will retire and co-pilots will have to train for their seats. Those on lower planes will have to train to move up. There is a trickle-down effect across the whole fleet. In the industry, there are more passenger miles flown per year, which requires training. Revenue potential for CAE is probably about 15% per year over the next 3 years.