CAE profits from rising drone use

Article Excerpt

CAE INC. $11 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.0 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) has won a contract from the U.S. Air Force to train pilots to operate Predator and Reaper remotely piloted aircraft (also called drones). This five-year deal is worth $100 million U.S. That’s small next to CAE’s annual revenue of $2.1 billion (Canadian). However, this deal should help the company win more training contracts, particularly as the U.S. military uses more drones instead of costly manned fighters. CAE is a buy. buy…

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