Opinions Jason Mann
Maxar TechnologiesMAXR.TOSHORTNov 13, 2020
They have a small short on it. Has decent price momentum but the valuation is still a challenge. Return on equity is negative at -12%, with a stressed balance sheet. Interest coverage looks poor. One that he would avoid.
$30.74
Stock price when the opinion was issued
$70.54
As of May 08, 2023. Market Open.
computer softwareprocessing
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BUY ON WEAKNESS
The space sector is promising. Still owns this and bought more with the weakness. With digital globe acquisition, they have married the space area well. Low level orbit satellite structure is promising. There are companies that need their data. Best positioned to combine data and put it in a good format. The valuation is still good. You are seeing SPACs flowing money into the area.
John ZechnerOwned
computer softwareprocessing
HOLD
He continues to hold but took a little money of the table because of a substantial move. It is space exploration plays. Their cap X spending will come down in the coming year. He thinks it is positioned right and is not extended. We need space data for so many uses. There is a growing use for it. For the longer term he thinks you should stay with it.
John ZechnerOwned
computer softwareprocessing
PAST TOP PICK
(A Top Pick Feb 20/20, Up 132%) He stuck with it and was rewarded. He still owns it although not as big a position as he once had.
John ZechnerOwned
computer softwareprocessing
HOLD
This was $80 a few years ago, then an acquisition of Digital Globe (made a lot of sense) made investors worry about the balance sheet, but that's improving as they pay down debt. The DG deal married DG's orbital satellites with Maxar's existing software to analyze that data from outer space, which is important to military defence and urban planning. MAXR has had a huge dip this year, but he's holding on. Is trading at only 8x operating cash flow.
John ZechnerOwned
computer softwareprocessing
PAST TOP PICK
(A Top Pick Oct 18/19, Up 275%) He kept picking away it and still owns it. A few years ago, this stood at $80, but fell to $10 when they a great deal to buy DigitalGlobe which increased the company's value though levered the balance sheet. MAXR does satellite imaging and analytics for defence and many other industries. It has a 10x operating cash flow, so it's still not expensive. This could hit $100.
John ZechnerOwned
computer softwareprocessing
TOP PICK
Strong demand is one of the catalysts. Restructuring story. New management. Good progress on balance sheet. Uptick in satellite orders. Free cashflow should be positive going forward. Good multiple. Earth imaging for government. Yield is 0.14%. (Analysts’ price target is $33.30)
Jennifer RadmanOwned
computer softwareprocessing
PAST TOP PICK
(A Top Pick Oct 18/19, Up 215%) Combined the old manufacturing business with the ability to assimilate information from space. Hugely important, from urban planning to defence. Cheap play on the space move.
John ZechnerOwned
computer softwareprocessing
BUY
Still loves it. Been a past pick and has had a huge move up. They've got rid of weak assets and are paying down debt. Their Digital Globe takeover a few years ago has been a great marriage of hardware and software with the existing company--this is profitable. Maxar is perfectly positioned. Still a good growth stock. He took a few profits recently, but will hold the rest long term.
John ZechnerOwned
computer softwareprocessing
TOP PICK
Their tragic acquisition two years ago hammered this stock from $85 to $6, because they added debt. They bought the software to do mapping of outer space, which is a huge growth area--security and urban planning need pictures from space. Also, MAXR assimilates all the data for customers They're gaining more contracts to pay down the debt. They sold off the old parts of their business. There's room to grow.
John ZechnerOwned
computer softwareprocessing
