CAE Has Further Gains Ahead

Article Excerpt

When we last featured CAE on our front page in November, 2004, we said the stock could soar as airlines revived following 9/11. CAE went on to rise as much as 80%, even though it faced a couple of major negatives. First, the rise in oil prices strained the budgets of the world’s airlines, who buy the company’s flight simulators. Second, the rise in the Canadian dollar undermined the value of the company’s sales in foreign markets (and foreign customers provide 91% of CAE’s revenues). The stock could remain sluggish, along with the rest of the market, in the next few months. But over the next couple of years and beyond, after the impact of oil prices and the Canadian dollar has run its course, we expect further big gains from CAE. CAE INC. $8.65 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; SI Rating: Above average) is a leading maker of full-size, computerized flight simulators. Airlines use these devices to…

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