CAE Inc (CAE.TO)

Expects it to bounce back after softness in the civil area. Airlines are going to be replacing their fleets. Expects military contracts to be awarded also. Concerns over softness in the military side have overshadowed the strengening civil area.

This has been an enigma for so many years because it is one of the only Canadian companies in the technology space that is the best in the world at what they do yet the stock never seems to go anywhere. Have since gotten into flight training which is a large division for them. Have taken their simulator technology and moved into medical, etc. They seem to have a lot of trouble delivering earnings growth and generating free cash flow.

Tied to upgrade in aerospace industry. World leader in flight simulation and pilot training. Trades down on fears of military cuts. Brought down volatility in their earnings. Thinks it is unjustly cheap. Asian airlines are growing and have an outsourced training model.

Offer flight training services as well as selling simulators services both in commercial and military. Worries about military spending has held the stock back recently but they have been announcing a lot of contracts on the civil side. New healthcare unit has shown that are capable of getting a few contracts. 2.2% dividend.