Topic: Value Stocks

CAE INC. $16

CAE INC. $16 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 269.3 million; Market cap: $4.3 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.9%; TSINetwork Rating: Average; www.cae.com) has extended its research program with the Quebec government.

Since 2009, the province has helped fund CAE’s development of medical simulation devices. These mainly include mannequins for teaching paramedics, nurses and medical students. They help reduce medical errors and lower insurance costs.

In all, the government will provide up to $70 million in loans through 2020. That’s equal to 3% of CAE’s annual revenue of $2.5 billion.

CAE is our top Conservative buy for 2016.

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