Maxar Technologies (MAXR.TO)

Has recently been adding to his position. The Loral Space acquisition made a ton of sense for them. It levered up their earnings tremendously so you will see beginning growth out of there. Obviously what is happening in the satellite division and their ability to sell commercial satellite to emerging economies and places like that is key to their growth. In their growth, they needed to do 7 to 8 satellites and he thinks it will get that for the year. Not unreasonably priced.

Has been adding to his portfolios. High return on capital and have a lot of engineering expertise. Recently made an acquisition in the US and he thinks this gives them the ability to get a lot more contracts.

If he were looking for a high tech name right now he would go with this one. Great track record. Forecasts look terrific. They keep winning more satellite deals.

Missed last quarter but their backlog is growing spectacularly. Current backlog is $3.3 billion. Recently bought Loral Space Systems, which was key. The US communication satellite market is bigger than the rest of the world combined and they were having problems accessing that market because they didn’t have a US subsidiary. This is now kicking in, in terms of contract wins. Very much a protected market as there are very few players that can do what they do.

Last year’s acquisition changed their makeup and are now much more of a leading satellite manufacturer to the commercial industry. Growth is coming from emerging markets where satellite TV is the most cost-effective solution to bring TV services to the country. Also, the US government are looking more to the commercial side to satisfy some of their needs. 1.91% dividend yield.

Hard to figure out why this stock is going lower. This has traditionally been a great long-term Buy and Hold but has been a lumpy stock. A lot of things in this market are going to get battered around and he wouldn’t be surprised if that happens to this one as well. Fundamentally he likes where they are going.

With the acquisition of SSL it has really changed their makeup. SSL was one of the leading commercial communication providers. Expanded MDA’s manufacturing capabilities because of their geographic presence. Demand for commercial communication cells is pretty stable. There is an increasing demand for digital content and high definition channels. Also, in emerging countries, penetration rate of satellite TVs is very robust. Also, into a program where they will be launching 3 satellites into space for monitoring traffic, pollution, etc. Expects double-digit earnings growth for the next few years. Trades at a reasonable multiple of 13X earnings. Dividend yield of about 1.5%.