Financial Post – Ten stocks for 2019: What the pros are picking to outperform this year
Pender Senior Investment Analyst and Associate Portfolio Manager, Amar Pandya, spoke to Victor Ferreira from the Financial Post about the stock pick he believes will outperform in 2019.
“The Stock: Maxar Technologies Ltd. (TSX/MAXR)
Maxar Technologies Ltd. “was a star company” on Bay Street, Penderfund Capital Management associate portfolio manager Amar Pandya said — and then it was targeted by short sellers in 2018. Spruce Point Capital Management accused the space-tech company of “overcapitalizing costs by inflating intangible asset purchases.” To make matters worse, the company reported an earnings miss for the third quarter, which immediately resulted in its stock cratering. Since the beginning of the year, Maxar’s stock has lost about 80 per cent of its value and closed Friday at $16.07. The stock’s performance has chased away investors — and that’s why Pandya thinks it’s attractive. Good news may be on the way in 2019 as the company is becoming U.S.-domiciled, which opens up opportunities to bid on larger U.S. defence contracts. Pandya said he also believes that Maxar will either wind down or sell its struggling GEO satellite production business, which management blamed for the earnings miss. “It’s the perfect setup, right?” Pandya said.”