cae

CAE INC. $14 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.4 million; Market cap: $3.7 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.7%; TSINetwork Rating: Average; www.cae.com) began operating in 1947 as Canadian Aviation Electronics Ltd. It originally made ground-communication equipment and antennas for the Royal Canadian Air Force.

In 1952, the company began making flight simulators for air force pilots. It’s now the world’s leading maker of flight simulators for commercial and military aircraft. CAE made about half of the commercial aircraft simulators in use today and has 16% of the military simulator market.

Sales of simulators to airlines tend to move up and down with the economy. To steady its revenue, CAE began training pilots in 2001. It now trains over 100,000 pilots and crew members a year at 50 schools worldwide.
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PLEASE NOTE: One week from today, on January 31, 2014, shortly after the stock market closes at 4:00 p.m. Toronto time, we will reveal our #1 U.S. Stock of 2014 to subscribers of Wall Street Stock Forecaster. You can be among the first to hear about our #1 pick for 2014. Because you’re a loyal subscriber, we are happy to offer you a bargain-priced, no-risk introduction to Wall Street Stock Forecaster. It gives you the first month—and the 2014 Stock of the Year—FREE. But you must act now. Click here. CAE INC., $14.24, Toronto symbol CAE, announced this week that it has sold five flight simulators to Air Canada and four other customers. In all, these orders are worth $70 million. That’s equal to 3% of CAE’s annual revenue of $2.2 billion....

PLEASE NOTE: One week from today, on January 24, 2014, shortly after the stock market closes at 4:00 p.m. Toronto time, we will reveal our #1 Aggressive Stock of 2014 to subscribers of Stock Pickers Digest. You can be among the first to hear about our #1 pick for 2014. Because you’re a loyal subscriber, we are happy to offer you a bargain-priced, no-risk introduction to Stock Pickers Digest. It gives you the first month—and the 2014 Stock of the Year—FREE. But you must act now. Click here. CAE INC., $14.10, Toronto symbol CAE, is our Stock of the Year for 2014. This is CAE’s third time as our #1 pick. It was our Stock of the Year in 2000, when it gained 130.0% for us. We picked it again for 2002, but 9/11 hurt air travel much more than we expected. Fuel prices also moved up, the economy weakened, and CAE dropped 54.2% that year....

We’ve chosen CAE Inc. as our Stock of the Year for 2014.

This is CAE’s third time as our #1. It was our Stock of the Year in 2000, when it gained 130.0% for us. We picked it again for 2002, but 9/11 hurt air travel much more than we expected. Fuel prices also moved up, the economy weakened, and CAE dropped 54.2% that year.

Today, CAE is a much different company....

CAE INC. $13 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.5 million; Market cap: $3.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) is the world’s leading maker of flight simulators for commercial airlines, with 70% of the market. It also makes simulators for military clients. The company began training pilots for its customers in 2001 and now has over 100 flight schools in 30 countries.




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PLEASE NOTE: This is our last Hotline for 2013. Our next Hotline will go out on Friday, January 3, 2014. ENBRIDGE INC., $45.35, Toronto symbol ENB, has won regulatory approval for its Northern Gateway pipeline. Northern Gateway will pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia....

CAE INC. (Toronto symbol CAE; www.cae.com) is the world’s leading maker of flight simulators for commercial airlines, with 70% of the market. It also makes simulators for military clients. The company began training pilots for its customers in 2001 and now has over 100 flight schools in 30 countries....

CAE INC. $13 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.5 million; Market cap: $3.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) is the world’s leading maker of flight simulators for commercial airlines, with 70% of the market....

PRECISION DRILLING CORP., $9.75, Toronto symbol PD, sells contract drilling services to oil and natural gas producers. The stock fell sharply after the Alberta Investment Management Company (AIMCo) sold its entire 15% stake in the company for $9.50 to $9.75 a share. AIMCo is a Crown corporation that manages Alberta’s public-sector pension plans and other special funds. Precision ran into trouble in 2009, because the credit crisis hurt its ability to refinance short-term loans it needed to buy U.S.-based contract driller Grey Wolf Inc. That’s when AIMCo purchased notes and shares in Precision....

CAE INC. $12 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.4 million; Market cap: $3.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.0%; TSINetwork Rating: Average; www.cae.com) has sold four flight simulators and related services to Indonesia’s Lion Air Group. It also sold two additional simulators to unnamed customers.

The company has now sold 33 simulators in its 2014 fiscal year, which began April 1, 2013. To put that in context, it sold 35 simulators in all of fiscal 2013.

The total value of the latest sales—$90 million —is equal to 4% of CAE’s annual revenue of $2.2 billion.
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