Maxar Technologies (MAXR.TO)

It rates slightly above half for him. The most recent quarter went down 17%. Earnings are expected to decline 6.5% in 2018. They have an 11 times PE multiple. They have a great business going, but you can find better value in other stocks.

A satellite manufacturer. Has owned this in the past. Growth has been lumpy in the US. They’ve recently done an acquisition which will increase their growth prospects, so she is watching and monitoring to see how the acquisition gets digested, and potentially she could buy it back at some point.

It is difficult to replicate what they are doing. You have to look at it with a 3-5 year horizon in mind. They are receiving recognition in the US as a provider. It is becoming a bit more predictable in its operations and you should see some multiple expansion after some volatility.

They are trying to be more and more tilted toward the US. They are trying to get more regulatory approvals in the US, which will be a significant catalyst. (Analysts’ target: $83.00).

(A Top Pick May 26/16. Down 21.15%.) Sold this soon after he had been on the show.

(A Top Pick July 20/16. Down 20.2%.) They were converting themselves into a US based company that was eligible to bid on US contracts. In the meantime, they made an acquisition which has been hanging over the stock. A vote is today or tomorrow. She sold when she saw better opportunities elsewhere.

Premium imagery and heat signature on land and on sea. They are the premium provider of imagery. (Analysts’ target: $83.00).

In the commercial satellite business, which he likes. A little bit lumpy from time to time, depending on what kind of orders they get and where they are in the cycle. They acquired Digital Globe, a US satellite imaging business. They are levering up the balance sheet quite a bit at 4X leverage, which is above his comfort zone. At 8.5X EBITDA it is not cheap enough for him. He owns a competitor, Urthecast (UR-T), which he would encourage you to look at. Smaller, but very much a growth story.

Just made a big acquisition of more than $3 billion, which is quite strategic for them. An excellent company. You cannot replicate what they are doing. The problem is, it is a very lumpy business. One day you can have a lot of business and the next day you can have 1 or 2 only. They put sophisticated satellites into space, which is extremely difficult to do. It all depends on satellite demands. The biggest global customer for satellites is the US. The company is trying to build a presence in the US and get all the necessary approvals so that they can win new contracts. He thinks they are taking the right steps.

Satellite communications and drones. There is a lot of buying in the large-cap names in Canada, and this is where you are going to get more upside because valuations are more attractive. They make all the intelligence that is in the drones. He sees growth in the business. Valuation of 12X, which is very cheap. It was beaten down last year because of tax loss selling, and has bounced back already. Well positioned going forward given its quality. About a year ago, they got clearance from the US government to set up a US company. The majority of their manufacturing is done in California. Dividend

Has been following this name for years, but hasn’t been in it for the last couple of years. He is watching very closely in the $60s. Remember, this is a business that has an incredible amount of human capital and intellectual capital. They make some of the biggest and best satellites in the world. The problem with satellites is that it is a very lumpy business, and they are going through one of those tough periods right now, and it really squeezes the margins. It is probably not a bad time to Buy the stock if you are a long-term investor.

The operational part of the business has really moved to the US, as the company wanted to get more US contracts to be part of the US aerospace/defence, but you needed to actually be a registered company there, so they split the company. When they need to raise capital, they will do it in Canada. Part of the problem is, everybody is under security to not talk, so you don’t know what is going on. Also, the satellite business is very tough, because there are too many satellites being put up.

This is a stock he had played earlier in the year, and illustrates his self discipline. He buys a stock on a break out. This one went sideways, and then broke down, so he ended up selling it at around $80, and it continued to drop. Technically it broke his level of support. In his opinion, this is still a falling brick, and there is no reason to try and guess where the bottom is. Until it starts to break out to the upside, he wouldn’t touch it.

Long-term hold? A satellite manufacturer, and the satellite industry market tends to be lumpy. Overall demand has been soft. Eventually, this should go back to more normalized levels. They acquired a company a few years ago that is very strong in the US, and they are getting it certified to hopefully garner more business there. 29% of their revenue is from the US. Currently trading at a very attractive multiple. Dividend yield of 2.25%.

This has gone from $90 down to the high $60s in the last few months, partly because of a slowdown in satellite markets, partly because of funding and partly because of overcapacity. They’ve had a huge initiative in trying to get more business from the US government, which has been taking longer than everybody thought. It may take a while to work this out. The next 6-12 months would be a good time to buy the stock.