Topic: How To Invest

The Successful Investor Hotline – Friday, July 2, 2021

Article Excerpt

CAE INC., $38.65, Toronto symbol CAE, is still a buy for long-term gains. The company generates value for investors as a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 35 countries and makes mannequins and other medical-simulators for training health professionals. CAE has now completed its acquisition of the military training operations of U.S.-based L3Harris Technologies Inc. (New York symbol LHX). This business makes simulators for military aircraft, unmanned drones and submarines. It also provides flight training services to the U.S. Air Force. The company paid $1.05 billion U.S. for these operations. To help pay for the acquisition, CAE sold 10.45 million common shares at $34.29 a share (Canadian) for a total of $358.5 million. It also sold $700.0 million of new common shares to Caisse de dépôt et placement du Québec ($475.0 million) and Singapore’s sovereign wealth fund ($225.0 million). In all, these new shares increased the total outstanding by roughly 12%. CAE expects the new operations…