Q: I bought this stock, because I thought there was a pent-up demand for new pilots. I have lost 10 -15%, since I bought it, now for the last couple of years it has gone no where, but sideways. So, is there actually a shortage of pilots?
Also, what is the forecast for the remainder of this year and next year. I am seriously thinking of selling. Now I am looking for your advice as to whether to sell this stock or keep it.
Thank you
Earl
Also, what is the forecast for the remainder of this year and next year. I am seriously thinking of selling. Now I am looking for your advice as to whether to sell this stock or keep it.
Thank you
Earl
5i Research Answer:
There is a shortage of pilots, and this is likely to get worse as the retirement schedule for existing pilots will only compound the problem. But CAE has not yet benefited and its results have been highly inconsistent. We took it out of our model portfolio a while back. Its backlog is growing, and is now $12.1B, but costs have gone up. EPS in 2024 will be less than it was in 2018 (though some decent growth is expected next year). We would consider it OK. It has a strong competitive position, certainly. But we would not miss it much if sold.