Q: Greetings 5i, I am considering selling CAE and reinvesting the proceeds in MDA. Based on stability, current valuation and runway for future growth, what is your opinion please on this swap? Thank you.
5i Research Answer:
CAE shares have finally woken up following its Q3 earnings report. MDA is smaller, and more expensive on valuation, but also growing much faster. CAE has more debt. We would be quite comfortable with this trade for an investor seeking growth and is OK with a smaller company.