Is Maxar Still a Toxic Stock?

Maxar Technologies (TSX:MAXR)(NYSE:MAXR) was down 6.96% in early afternoon trading on March 15. The stock has plunged 59% in 2019 so far. Shares are down nearly 90% year over year.

Maxar suffered a series of disappointments, setbacks, and outright catastrophes over the last year. It was first targeted by a short-seller in a report that questioned its accounting. It was forced to admit the mistake in a quarterly report. In early January 2019, Maxar reported the loss of its WorldView-4 Imaging Satellite, which pushed the stock into single-digits.

In late February, Maxar revealed that it would retain but restructure its GEO satellite business. The company concluded that the business was more valuable to keep rather than submit to a low bid. Maxar will keep its 1300 series of large GEO satellites but will devote more attention to the smaller "Legion" class of spacecraft.

In doing this, Maxar hopes that it will still be able to attract U.S. government business. This was part of its original strategy that appeared to go belly-up over the past year and a half.

For the full-year in 2018, Maxar reported a stunning earnings per share loss of $21.76. It reduced its quarterly dividend to a paltry $0.01 per share. This represents a yield of less than 1%.

Maxar is still on its feet, but the company is simply in too deep of a crisis to trust in early 2019.