MDA Space Ltd. (MDA.TO)

Tends to be really volatile, more than he would expect given the tailwinds. Accessibility gets cheaper each time anyone launches a rocket, so corporate adoption will only increase. Market gets excited on news, and then the company hits a speed bump. A challenging back-and-forth.

Two ways to play. Either have a core position and trade around that as news comes out. Or put it in your account and just forget about it for 10 years.

Likes the upcoming acquisition in Europe. Government spending on space will continue.

The chart is in an uptrend, though volatile. He has traded this before. A good company. Now, the chart appears to be hooking up, which could be a good buy point. First, he wants to see more proof of an uptrend. He buy a tranche at $45.

Volatile because it's newsy, a mid-cap name, and only popped on investors' radar in the last 18 months. Secular outlook is excellent. Should benefit from ongoing buildout in military spending domestically. Acquisition will position them well to bid on classified contracts in US. Mostly a domestic play. Backlog is large and growing.

Chart's volatile, swings a lot, a trader's dream. In the midst of another pullback. One positive is higher highs and higher lows. Appears to be trying to stabilize and hold above recent lows. You can nibble here, but limit your risk around $33.

New CEO is trying to pivot more to the defense side, so give that time. A great pivot if they can pull it off. Challenge is that the pivot's required due to a lot of deteriorating trends under the hood. Has potential, but not a great performer over the long term.

Could be a value trap. Better opportunities elsewhere.

Opportunities should extend to at least the end of the decade. New funding going toward Canadarm. Big Arctic contract announced this week benefiting MDA and TSAT. Expanding production capacity, making acquisitions. Likely to benefit from Canada's big step up in military spending. Potential pipeline of $40B on low-orbit satellites.

Better offerings elsewhere in the space.

Huge run, drawdown is partially sentiment driven. Balance sheet still in pretty good shape. Trading ~24x PE for 2028, growing 16%. Recent acquisitions look pretty accretive. Another $1B worth of contracts. Space names have really come down the last little while. An important company to own in Canada's space complex, amid the push to build up the military sector.

Aerospace is a hot industry given the war, the Pentagon and Spacex. MDA is volatile, but what are the potential earnings, which are supposed to be $1.80 EPS in 2027, then jump to $2.08 in 2028, or 10% growth. But MDA trades at 30-50x PE. Volatile stocks like this that double or triple, you must sell half your shares.

A lot more volatile than he expected, but you have to live with that. Two acquisitions really broadened its scope. Still likes it, should continue higher.

Generally trending upward since it bottomed out in November. Big runup ahead of the SpaceX IPO. Recently starting to break down. Key level has been $45; if it holds there, that's encouraging. If not, then it's shifting into more of a correction.