Topic: How To Invest

The Successful Investor Hotline – Friday, January 3, 2025

Article Excerpt

CAE INC., $35.19, Toronto symbol CAE, is still a buy for long-term gains. The company is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 40 countries. Activist investment firm Browning West LP recently disclosed that it now owns 4.3% of CAE’s shares. Browning wants to participate in the selection of a new chief executive officer now that current CEO Marc Parent will retire in August 2025. The company has retained an executive search firm to help it identify candidates. CAE has not yet responded to this demand. However, the activist’s involvement should help draw more attention to the company’s improving prospects as its winds down unfavourable fixed-cost legacy contracts at its defence business. These legacy deals prevent it from passing along its rising costs for labour and raw materials. The company expects to complete remaining contracts over the next two years. CAE also continues to win new orders for its flight simulators and training services…