Topic: How To Invest

What is Pat’s commentary for the week of March 31, 2020

Article Excerpt

CAE Inc. is a long-time favourite of ours, and has been a top performer for our subscribers—until COVID-19 came along. The stock suffered more than many others, plunging from a February peak above $42 to a March low under $15. That’s because CAE, as a provider of simulator training for pilots, serves the airline business, which felt the impact more than other industries. Overall, airline ticket sales fell off in response to news of the virus; things got worse when governments around the world throttled air traffic or shut it down altogether. The International Air Transport Association now estimates that airlines could lose a quarter of a trillion dollars this year, and a number of airlines could go bankrupt. Of course, much depends on government aid to the industry in a variety of countries. Then too, the economy could snap back quickly when the pandemic passes its peak. Our Successful Investor research department drew up this Inner Circle Spotlight report on CAE…

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