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Discussion Starter #1
Anyone have any thoughts on this?

Share price is 37% of what it was 3 months ago. Current PE ratio is 4.7

Company has very low debt which I would think should allow them to weather any covid related slowdowns. On the surface this seems like a screaming buy. Anyone know any reasons why it isn't?
 

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They supply components for aircraft industry that was already in a rough place before the travel bans - Bombardier, Boeing, GE etc

I don't know a lot about MAL specifically but I'd be interested in their potential in space and satellite subsystems. There is exponential growth in satellite launches right now. What if any competitive advantage do they have as many countries are building satellites?

They also apparently do rocket systems but I'd want to know if they are competitive at all with SpaceX (Elon talks about keeping components internal within his companies)
 

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i'm not sure whether or not Magellan still belongs to Onex's stable of international equity holdings

Onex=tycoon gerald schwartz of toronto. Stk has plunged near 45% in a month. I own some shs alas.
 

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Discussion Starter #4 (Edited)
i'm not sure whether or not Magellan still belongs to Onex's stable of international equity holdings

Onex=tycoon gerald schwartz of toronto. Stk has plunged near 45% in a month. I own some shs alas.
MAL is majority owned by N. Murray Edwards (CNQ, Calgary Flames).

About 1/3 of their revenue comes from defense contracts while the rest is commercial aviation.
 

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I was looking at this and thought it seemed good value prior to the market madness. I stepped away and now I will evaluate once it seems like we are coming out of this.
I do not feel good about this industry at the moment and being already employed by an aircraft component manfacturer it might be best for me to avoid it.
 

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The company is fairly sound balance sheet wise and I own shares. The outlook is a total mess though. We have the potential for the entire aviation industry to collapse.

Bankrupt airlines don't buy planes. If Boeing isn't building planes, they don't need parts. And it filters down.

This is why I don't think the government has any clue what they are doing. The ripple effects are basically unimaginably disastrous.
 

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The company is fairly sound balance sheet wise and I own shares. The outlook is a total mess though. We have the potential for the entire aviation industry to collapse.

Bankrupt airlines don't buy planes. If Boeing isn't building planes, they don't need parts. And it filters down.

This is why I don't think the government has any clue what they are doing. The ripple effects are basically unimaginably disastrous.
The very reasons I'm fearful for my job listed right there.
 

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Not that it impacts MAL directly but space industry involved the first company I heard planning to file for bankruptcy. OneWeb recently launched 74 satellites via Soyuz

Although I suspect they took an opportunity to erase debts and restructure etc space and aerospace plans are being delayed indefinitely
 

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Discussion Starter #10
This stock is up 42% over the past few days seemingly due to share buybacks.

Not sure what this means for us smaller investors when one guy owns 76% of the outstanding shares.
 

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The other day I saw Magellan on a poster of the components of the F-35

Magellan continues to be the largest Canadian supplier to the F-35 fighter jet manufacturing process. It is responsible for supplying the tail assemblies for about 50 per cent of conventional takeoff and landing versions of jets which are expected to eventually number about 1,000.

Magellan made a considerable investment to be able to handle the work, and over the next couple of years, production in Winnipeg is expected to ramp up to 60 units per year. Over the life of the contract, Magellan expects to book at least $1.5 billion in revenue on the work.
Article from 2019
 
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