CAE INC. $15 - Toronto symbol CAE

CAE INC. $15 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 263.8 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.6%; TSINetwork Rating: Average; www.cae.com) has a long history of developing flight simulators for Bombardier’s aircraft. This expertise will give CAE an advantage when airlines begin training their pilots to operate the new CSeries jet.

Meanwhile, the company sold a record 48 simulators in its 2014 fiscal year, which ended March 31, 2014. It ended the year with a $4.2-billion order backlog, which is equal to roughly two years’ worth of revenue.

CAE is our #1 buy for 2014.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.