Maxar Technologies (MAXR.TO)

Satellite producer. Lumpy business but they have a large chunk of it. They are getting high growth on the new segment of analysis of the information that you get from satellite. It is like hardware and software bundled together. Stock trading at 9 times what earnings are expected to be this year. Yield 2.3%. Great story. Cheap probably due to some balance sheet issues. (Analysts’ price target is $82.79)

(Past Top Pick, January 23, 2017, Down 6%) He sold recently his shares, because they took on too much debt. He doesn't like highly levered companies. They've had some good recent quarters though.

Is this a 5-10 year hold? Used to be called Macdonald Detweiller. She sold it a couple of years ago. In a more positive business now. Satellite business is slowing, caused shares to pull back. Now have started to diversify. Not an income stock, yield just over 2%. Reasonably valued. Wait and see. See how digital imaging business integrates in. Will have to monitor trends, not just buy and hold.

It's trading at a good level now. They have huge growth opportunity with many of their clients being North American defence agencies, but they carry a lot of debt in a time of rising interest rates. This has dragged on the stock price. They are courting more American investors as they pick up more American clients. He's definitely watching this.

Basically, the merged company between Digital Globe and McDonald Dettwiler. Huge growth opportunity. They took a lot of debt to fund the acquisition. Valuation is good. Business is really good going forward.

(A Past Top Pick on Oct. 6, 2017, Down 20%) Merged with DigitalGlobe, thus marrying hard satellites with software and data. There's great demand from industries like agriculture and defence to provide satellite imagery. The street is disappointed that they continue to spend instead of paying down debt, which pressures the stock. A great long-term story. Only 1.2x book value.

They trade at low valuations and offer future growth. They make satellites, then bought DigitalGlobe to create pictures from space that many industries like agriculture to maps use. Trade at 8-9 forward earnings. Cash generation. They will eventually pay down their debt. (Analysts' price target $79.91)

It has been in a downtrend for the last three years. There have been periods of slight breakouts. It could have a move-up in the short-term, but he wouldn't be bullish here long-term.

(A Top Pick Oct. 6/17, Down 17%) Also a top pick. The issue was the Digital Globe acquisition, which disappointed the street, because the debt pay-down will be slower than expected. Loves their structure and how the company is positioned. Still believes in it, despite a poor month.

Last year, they acquired Digital Globe (software analysis of satellite data) which makes a lot of sense for MAXR. 10x forward earnings and 8x forward cash flow. Debt oaydown is a little slower than expected, because they are investing forward growth. This will pay off. (Analysts' price target $81.54)

The old MacDonald Detweiler, which she used to own. They were primarily in manufacturing of satellites, and the business turned out to be quite lumpy. Made an acquisition of a digital imaging business in the US, which she feels is going to increase their growth prospects and broaden their product offering.

(A Top Pick Oct 13/16, Up 8%) They build a lot of satellites for a lot of defense agencies around the world. He thinks it will get a valuation more in tune with US satellite companies. He continues to hold it and likes the prospects. They bought digital global and so should find it easier to win US contracts.

The last acquisition they did was excellent. They've struggled recently, but have focused more on the global satellite market. They are almost moulding the hardware and the software of the global GPS satellites. There are lots of commercial applications coming on in industrial applications, as well as government. Trading at a big discount to comparable companies in the same areas of defence, military and satellites.

(Changing to Maxar Technologies (MAXR-T).) Just finished the DigitalGlobe acquisition which was a perfect fit. Satellites is a growth market, but is sort of lumpy. DigitalGlobe adds the software that interprets all the data. Plus, the acquisition brings in US presence giving better access to US intelligence and US military and US sales. This is trading at a big discount to all the aerospace firms.

Being listed on the NYSE next week, which should help the stock. This company has “value added” technology. Probably not a bad buying opportunity now, with it having come off 15%-20%.