admittedly it's trading in Canadian dollars. I think space stocks may have a big year this year if spaceX goes IPO late this year. Don't know anything about the space industry, I saw Morgan Stanley upgrade this company. And what I looked at the summary statistic valuations, does not appear to be as highly valued as the space stocks I see like RKLB, ASTS, etc, and is actually already profitable. Those of you who are long on MDA, what is your rationale and your projections?
Posted by ksing_king
5 Comments
Mdalf is a great company. Stock about to double
I heard about this stock for the first time on like thursday. Put it on my watchlist, immediately goes up 15% friday.
Own this and TSAT which is not as strong but very undervalued with contracts in the pipeline. Has had a nice return for me already (outperformed MDA YTD). The SpaceX IPO and Canada needing contracts with Cdn. companies for defence has these stocks positioned so well this year.
Great company, don’t own. Solid run this year so far.
There’s some other names in the space sector that are profitable and a bit under the radar.
GHM, ITT, FEIM, CW, ATI, CRS, BELFB/BELFA, LDOS, AMTM, MOG.A are few other names to play space/defense with companies that are profitable.
This is a great company with a robust pipeline that trades at a far more appealing valuation than similar companies in the sector. The Morgan Stanley analyst specifically called out both these points – that they had a solid pipeline and that it was 70% to 80% undervalued relative to similar companies.
The Canadian government also has significantly increased their defense spending, and MDA is expected to benefit from this. I’ve owned it for about a year and doubled down when the price fell off a cliff because they lost a deal with Echostar. The market significantly overreacted to this news, and I think it’s clear sailing for MDA from here on out.