RE: 1991 = $ 2.50In these markets anything is possible...but I think your sentiment is more applicable to Nortel and Bobardier....both of these companies are in much worse shape, than the start of the 90's
Remember both were staid conservative companies with positive reliable earnings with little bloat....then they became exciting "growth companies", with huge expednitures and are now both suffering from horrid cash flow and horrid overcapacity
CAE is a much different company thatn it was in 1990...the fact that it's rennaissance took place AFTER the tech bubble was bursting is testament to that....so the company is a much improved one and has not been guilty of the malinvestment of the other blue chips. Indeed in terms of price to book CAE is available for even a lower price...and it is a much superior company to what it was in 1990
It diversity over the military shpere is a godsend...and it model to provide centralized outsourced training a godsend to a secotor that must keep pilots current but are facing cash problems.
I have had direct dealing with CAE and indirect with Nortel....and thier cultures are completely different...Nortel was run by "clever" bean counters who manipulated balance sheets and process gurus who spent more time looking at organizational and flow charts than on business....CAE has the lowest ratio of admin and managment of any compnay I know...it's character is determined by its engineers.
I think people are starting to understand this difference....with Bombardier melting down, a put/call ratio higher than even of that of 24 july CAE stock is hanging in there...CAE is one of the few quality blue-chips around.
the stock...