Q: I was on the verge of selling CAE until seeing that it had taken a recent jump in price in the last couple of days.
Could this mean the company's promise is finally coming to some fruition?
Would you recommend continuing with selling it as part of a portfolio clean-up or waiting and seeing if there is renewed hope on the horizon for this company?
Thanks as always.
Could this mean the company's promise is finally coming to some fruition?
Would you recommend continuing with selling it as part of a portfolio clean-up or waiting and seeing if there is renewed hope on the horizon for this company?
Thanks as always.
5i Research Answer:
We would caution against reading too much into a couple of days' trading activity. CAE has had potential and a large backlog for some time, but it has not been able to execute well. It is down 21% over a year, and is still not really cheap at 21X earnings. Its last quarter was OK but not overly compelling. We would be OK continuing with an already-established clean up program.