Heroux-Devtek Inc. (HRX-T)

Very strong Canadian company that doesn't get enough attention from the markets. Last quarter starting to prove business prospects. Landing gear in very high demand within airline sector. Trading at discount to other names in the sector. Very high barriers to entry within the business. Margins continue to expand - will be good for cash flow. Balance sheet very strong with cheap valuation. 

They execute brilliantly, integrating very well. They produce landing gear for airplanes. They finished absorbing a major acquisition of a Spanish company which got them into Airbus. They also work on the Boeing 777x. The capex and acquisition spend is now done, so they can pay down debt or buy more companies. HRX is one of the most profitable companies in aerospace/defence. But the market hasn't given them the credit in the last quarter, so now is a good time to take advantage of their discount valuation. (Analysts’ price target is $22.71)

(A Top Pick July 21/16. Down 20.91%.) Earnings have declined and pretty modest growth is being forecast. With their 9% free cash flow yield, it is still a very interesting company.

A high quality industrial name. Landing gears on planes. They are the #3 producer, but are actually the most profitable in the world. Management team is very well aligned. Valuation is reasonable.

Designs, manufactures and repairs aerospace industrial components. The stock has moved up significantly recently, partly because they have laid out a ton of CapX in anticipation of a new contract from Boeing (BA-N). On a 4^th quarter trailing basis, free cash flow has swung from -4% to a +3.3%. Analysts are forecasting 27% earnings growth. For the March/18 fiscal year that gives you a 15.6X PE, and an attractive .6 PE to growth.

An aerospace company. Do a lot of landing gear for planes. They have a long history of making very wise allocation of capital, and thinks they are at a point now where they might start to look at doing something else interesting. They just did a lot of work for the Triple7 landing gear for one of the new planes.

Likes the space. This is a very well run company. A good hold here. Thinks any manufacturer in Canada will do well over the next 5 years.

Lately has not been very liquid. The breakout was very strong and it was a gap on Jul 17^th. Stop is 12.25 but upside is unlimited right now. Use a 100 day moving average as a stop.