CAE Inc (CAE.TO)

(Top Pick Mar 18/14, Up 0.89%) One of these times he will be right. The long term breakout is Feb/15 and some day it will break out for good. It repaired a lot of the underperformance so he is positive on the stock.

Aerospace sector looks attractive. It has room to grow. The driver is Asian airlines. He lightened up on it because it seems to be in a flattish portion of its growth curve. It is attractive overall but it is just a hold right now.

A fantastic company, but not such a great stock. Never seem to quite make the numbers. Technology is great and their products are great. Demand for pilot training is increasing, especially in emerging markets.

A leader in the simulation, training product space. Their business is 60% civil, 30% defence with 10% in health care. With the growth in the number of active new fleets, he is seeing new pilots required along with new pilot certification, not to mention re-occurring pilot certification. Right now there are about 28 commercial plane assemblies per week, and for every one of those planes, you need 10 to 12 pilots. There is a lot of growth in the space which is translating into contracts. Dividend yield of 1.86%.

(A Top Pick Jan 6/15. Up 2.85%.) Any respectable company involved with aerospace has been working higher over the past several years. This includes defence contractors. He would stick with this is he thinks it is going to go higher.

The military train their people in simulators more and more. They have an excellent portfolio of civil and defense.

(A Top Pick Sept 16/14. Up 12.47%.) This late in the cycle, he is a believer in sticking with a dominant theme, which in this case is healthcare and aerospace. Feels that aerospace is a long-term theme. Chart shows multiyear highs, so if it breaks above $15.50 in volume, then it is blue sky.

(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.