Fund manager Christine Poole says Macdonald Dettwiler is undervalued.
Poole, Managing Director of GlobeInvest Capital Management, was on BNN’s Market Call Tonight with host Mark Bunting yesterday, where she revealed her current top picks
Poole bought MDA in May at around the $68 mark, and says she still sees a lot of upside in the stock.
The acquisition of Space Systems Loral changed the makeup of MDA, she says. The monster pickup expanded MDA’s manufacturing capabilities to a much wider geographic base, and opened up new markets.
She says one area of growth will be driven by the demand for additional content and high def channels. Poole sees an opportunity in emerging markets, where the penetration of satellite TV is still expanding.
She also sees opportunity to tackle the satellite needs of the U.S. government, where budgetary cutbacks have them on the hunt for cheaper solutions. She thinks there is business to be had in intelligence and surveillance services to government agencies as well.
Poole says she expects double digit earnings growth from Macdonald Dettwiler over the next few years, noting that the stock currently trades at what she believes is a very reasonable multiple of thirteen times forward earnings.
At press time, shares of Macdonald Dettwiler were up three cents to $66.23.
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