Keith Richards MDA Ltd. MDA-T HOLD Mar 12, 2025

It covers making satellites to software management. It is a great Canadian story and an example of how good Canada can be. It should grow by 30% for three years with great margins and trades at 13 times cash earnings. He is looking for a quick increase in the stock price to $50.    
Buy 6  Hold 2  Sell 0

Last few years have seen a resurgence of investment in space. Secured contract to build satellites for AAPL contractor. He's been buying recently, not that expensive. Exceptional long-term growth.

They make the Canada Arm but the real growth in the satellite business is in low orbit satellites - it is much cheaper. MDA is a leader in this with a big backlog and a lower cost structure. It has done well in this area lately but there is lumpiness in the earnings.

Very successful. On his farm team. Has been incredibly resilient going through this downturn. Has a deal with AAPL. Talk of a merger in US would require financing; if markets are a bit better, he'd probably participate.

At the time, there were huge announcements coming, and there was a huge order backlog. Is the only pure-play space tech stock in the world. The space economy is booming and they are perfectly positioned. Are famous for their robotics (Canadarm). The backlog has jumped from $3 billion to $5 billion, and recently raised guidance by 40% revenue and EBITDA growth. Trades at a discount to its US peers. 

Friday saw NASA cut funding for a lot of space programs, significant impact on MDA. On his radar. Really impressive contract wins, revenue growing pretty quickly, sector's been hot. He's invested in companies that depend on government and has been burned before. Be careful.

Last month, price, volume, relative strength were all pointing to a breakout to new highs, and now we see that. But a broad corrective phase is coming in 6-8 weeks. But you can start a position now, then add on weakness. Really likes the chart.

Exciting prospects. Cost of space has dropped so much it really opens up the market. That sector will have very strong tailwinds over the next several decades. Around for 55 years. Leader in space; satellites, sensors, components, Canadarm. Huge backlog. Great topline and bottom line growth. No dividend.

Really feeds into growth in the satellite business and space-based Wi-Fi. Lots of opportunity for growth in competition to Starlink. Run up. Better than 93% of companies in the S&P over last 52 weeks, so he wouldn't bet on a significant pullback. Still room to run.