CAE Inc (CAE.TO)

It has been a really good stock. He bought on a break out and liked the trend line. It is above the trend line so probably should pull back. That would be an opportunity to buy. His fundamental guy likes it quite a bit.

(A Top Pick May 8/17. Up 1%.) They came out with their quarterly results a couple of days ago and blew the door off on their 4^th quarter results. Seasonally, this goes higher right through to the end of July. Every year there are the European air shows, and whenever that happens, there is anticipation of airplane sales. This runs from June 19^th to 26^th.

Technically the chart is showing a strong upward trend, and broke into new highs. The seasonality is from now until the end of July. However, something else coming up very shortly. Every year, around the end of June, there is the European air show, and these stocks move higher. (Analysts’ price target is $21.50.)

He really likes this. They seem to be announcing contracts all the time, some of them quite major. What he really likes is that they are one of the main players in the flight simulator world, but also one of the dominant players in pilot training. There has been such a turnover recently of pilots and new pilots that have to be trained, and there will continue to be. Well balanced between military and commercial. Thinks this still has room to run.

Flight simulator technology company. Recently signed a large contract with the US government. Trump is suggesting that more money should be put towards defence as well is putting more pressure on NATO members to increase defence spending. This recently broke through $15, so technically he sees strength. Meets his fundamental criteria, but a little below his threshold of 20%.

This has been a great turnaround story. A great business. He has exposure to the aerospace sector through another company, which he prefers. The chart on this looks great, and the valuation isn’t stretched by any means. If you don’t hold something in the aerospace sector, this would be a high-quality name to own. He doesn’t see a lot of risk in the near term.

(A Top Pick Oct 16/15. Up 33.58%.) Airlines are facing a very big problem in that a whole bunch of commercial pilots are going to be retiring in the next 10 years. This company is also makes money on the military side. This is still a good opportunity.

(A Top Pick Nov 13/15. Up 34.24%.) This has gone up considerably and is getting to a point where it is close to being fully valued. It has always been an extremely well-run and well thought out company, and one of the major players in the flight simulator/training business. If it were a few dollars higher, he would probably be taking some profits.

He is becoming quite warm toward defense stocks. This is on his watch list. They are one of North America’s largest civil flight trainers. There has been an increase in defense training in the US. There is an annual shortage of 60 thousand pilots.

Makes simulators for either planes, defence or healthcare. Earnings have been cranked up by about 4% in the last 90 days, and are expected to grow from $.98 to $1.05. 14% ROE. On a longer-term basis, there are a whole bunch of pilots that will be retiring in the next 3-5 years, if not 10, and it is a lot cheaper to train pilots with a videogame than with flying a real plane. 1.68% dividend yield.

(A Top Pick Feb 27/15. Up 30.92%.) (BNN Showed “Oct 29/15” in error, so percentages may not be accurate.) This is a leader in the simulation space. He sold his holdings locking in his gain.

The chart shows a trading range from 2014 on, which it has just broken out of, which is always a good sign. It reached a higher high, and is now testing that high. Retesting the high indicates that buyers are so convinced that they do not mind paying previously high prices. It also means that sellers have been exhausted.

(A Top Pick May 15/15. Up 14.34%.) Still likes this. There are a large number of pilots who will be retiring over the next 3-7 years, and it is a lot cheaper to train someone using this company’s simulators, rather than actual airplanes. They are doing really well on both commercial and military sides.

(Market Call Minute.) Has had a recent rally, so it would probably be Sell.

A great company. A lot of technology and a lot of grey matter there. They benefited from the global growth in aviation, etc. Military spending slowed down, but they were able to replace that with the aviation growth. Has a hard time seeing the stock doubling from here over the next 5 years or so.