MENU

Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

1 Canadian Space Play That Offers Out-of-This-World Value

Macdonald Dettwiler & Associates Ltd. (TSX:MDA) is a Richmond, B.C.-based company that provides surveillance, intelligence, and communications solutions to businesses and high-profile government organizations such as NASA. You may be familiar with the Canadarm, which was produced by MDA. It’s the remote manipulation arm on board the space shuttle as well as the International Space Station, which proudly displays the Canadian flag.

The company recently beefed up its space imagery portfolio with the acquisition of DigitalGlobe in a deal worth $3.1 billion, which is expected to become accretive to MDA’s top line next year. This acquisition makes MDA a dominant player in the satellite imagery space, which has the potential to offer a ton of value to prospective clients.

Satellite Imagery a huge opportunity with many applications

DigitalGlobe is capable of creating high-quality images of Earth from space. These images provide data that provide a lot of value to clients such as the U.S. Department of Defense, who can take a glimpse of what’s happening over North Korea. It’s not a mystery that Kim Jong-un has been ramping up his missile tests of late. With high-resolution images from DigitalGlobe’s satellite, the U.S. government will be able to get a bird’s eye view of any missile setups in North Korea’s military zones.

It’s not just military applications that satellite imagery is good for. DigitalGlobe can provide data that will help corporate projects run more efficiently. For example, Facebook Inc. (NASDAQ:FB) is analyzing billions of DigitalGlobe images to create accurate population-density models.

Using complex computer vision algorithms, Facebook is able to visually determine how to deploy terrestrial networks, satellites, and drones to most efficiently provide affordable internet to developing countries. With the help of DigitalGlobe’s satellite imaging technology, companies such as Facebook are able to connect the world in a cost-effective manner.

The applications are endless, and MDA’s satellite imagery segment is one of the best in the world. I believe MDA is a fantastic high-tech play that has been flying under the radar of most Canadian investors. MDA intends to have its stock traded on the New York Stock Exchange sometime after the DigitalGlobe acquisition is closed, and I think this move could spike public interest in the stock.

What about value?

MDA has been pulling back for quite some time now, and shares are down 33% from its high. The stock currently trades at a 17.8 price-to-earnings multiple, a 2.1 price-to-book multiple, a 1.2 price-to-sales multiple, and a 14.1 price-to-cash flow multiple, all of which are substantially lower than the company’s five-year historical average multiples of 28.8, 4.5, 1.8, and 25.9, respectively.

The stock is the cheapest it has been in many years, and I think deep-value investors would do very well by initiating a position today. The stock is experiencing a considerable amount of downward momentum, so I’d buy a small portion of shares today with the intention of buying more on any weaknesses that may happen going forward.

Stay smart. Stay hungry. Stay Foolish.

Canada's answer to Amazon.com

You've probably never even heard of this up-and-coming e-commerce powerhouse headquartered in Eastern Ontario...

But, despite coming public just last year, it's already helping the likes of Budweiser... Tesla... Subway... and Red Bull move $9.9 BILLION (and counting) worth of goods online each year.

And now it's caught the eye of the legendary investor who got behind Amazon.com in 1997 -- just before it shot up over 23,000% and made investors like you and me rich beyond their wildest dreams.

Click here to discover why this investor says it's time to buy.

Fool contributor Joey Frenette has no position in any stocks mentioned. David Gardner owns shares of Facebook. Tom Gardner owns shares of Facebook. The Motley Fool owns shares of Facebook. Macdonald Dettwiler is a recommendation of Stock Advisor Canada.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.