Topic: How To Invest

The Successful Investor Hotline – Thursday, April 9, 2020

Article Excerpt

CAE INC., $19.00, Toronto symbol CAE, remains a buy for our subscribers. CAE generates value for investors as a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 30 countries and makes mannequins and other medical-simulators for training health professionals. The COVID-19 outbreak has hurt demand for the company’s flight simulators. It has also closed a third of its pilot-training schools. As a result, CAE has suspended its $0.11-a-share quarterly dividend. That should save it $111 million a year. To put that in context, the company earned $98.0 million, or $0.37 a share, in the quarter ended December 31, 2019. CAE is also temporarily laying off 25% of its workers and cutting salaries for executives and other employees. Meantime, the company’s healthcare division has developed a new medical ventilator to help Canada cope with the COVID-19 pandemic. If health regulators approve the design, CAE could begin manufacturing the machine within weeks. CAE recent coverage: Hotline for March 20,…