CAE Inc (CAE.TO)

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.

Last year they made an acquisition and spent a year integrating it while their margins were suffering. Finally last year, the margins started looking better and she thinks they will be good for the next little while. We are in the middle of the cycle where there are lots of new planes being sold, which is always good for them. They are the leader in simulators.

Likes it and follows it. Winning lots of new contracts on the simulator. Would like to see a pullback and then would buy.

An over-looked aerospace play currently trying to break to all-time highs above price peaks spanning 15 years. CAE provides modeling, simulation and training for civil aviation and defense.

Started buying Q4 last year. It is a play on the global airline business. Tremendous growth, especially in Asia. Interesting growth profile looking out 3 years with revenue growth and margin expansion. He would buy more on a pullback for a 3 year hold.

(Market Call Minute.) Thinks it is probably going to be a couple of good years for this company. Business is improving and they are getting the contracts. The backlog is there.

(A Top Pick Nov 29/12. Up 32.87%.) Investment thesis is that the world needs more planes which is in a very strong cycle. They are the leaders in simulator training. Suffered lately because of pullbacks in military spending, especially in the US, but they are a more cost-effective way of training and people are starting to realize that. Also, acquired the world’s largest global pilot training business. Can see a secular tailwind to this. Fastest-growing airlines are the Asian ones, which have an outsourcing pilot training model. Dividend yield of 1.93%.

Chart is showing an upward trend and the stock is slightly outperforming the Canadian market. Technically it looks pretty interesting at these levels. Historically, this stock has a period of seasonality going into the summer and goes up with most of the aerospace stocks. This is a winner, so stick with it.

Likes this business. This has a military and flight simulator component. Good technology and a leader in it. Margins have been dampened by softness in the military side. The flight simulator site is growing very well. Haven’t participated all that well yet, in the aerospace cycle and he would expect them to participate going forward. If it doesn’t happen over the next 6 months, it will happen within the year. Will probably be $20 stock at some point.

(A top pick Oct 1/13. Up 1.03%. Up 8.5%.) Chart showed a big long consolidation and he waited for the breakout at about $11. The minimum target on this is $13.

(A Top Pick October 22/12. Up 10.41%.) Likes this kind of exposure to the growth in airlines. They have both the military and the commercial side. Extremely well managed.

(Market Call Minute) Long term buy. A business where they dominate the field. Represents a source of foreign exposure to a Canadian company.