Sky Falling for Plane Makers – Analyst Blog
Source: http://www.zacks.com/stock/news/18337/Sky+Falling+for+Plane+Makers+-+Analyst+BlogPosted on Wednesday, March 18th, 2009 | In Stocks to Watch
Highlighted stocks include Boeing’s (BA), Embraer (ERJ), B/E Aerospace (BEAV), Hexcel (HXL) and Ladish (LDSH).
The Sky is Falling! Really!
The aviation financiers gathered together in Phoenix this week to commiserate — with each other as well as the commercial aircraft manufacturers. Their message: “You can build ‘em, but you can’t get financing for ‘em!” Uh oh!
One attendee opined that we who live in the Pacific Northwest are about to see whitetails (vernacular for undeliverable aircraft) at Boeing’s (BA) finishing plant in Seattle (as are the French at the Airbus plant in Toulouse). The ultimate consequence of this shortfall in funding is that Airbus and Boeing — plus Bombardier and Embraer (ERJ) — are about to encounter the same thing that has happened to the executive aircraft manufacturers (not to mention the automobile makers, et al): Too many pieces of equipment and too few buyers with money. Darn!
Of course, the affected stocks have forewarned us of this impending disaster. While the S&P 500 is down 41.5% over the last 52 weeks, Boeing is off by 55.0%, B/E Aerospace (BEAV) is down 78.2%, Esterline Technologies (ESL) is down 59.5%; Hexcel (HXL) is down 68.8%, Ladish (LDSH) down 78.8%…and the list goes on.
Perhaps — just perhaps — ILFC (the World’s largest aircraft leasing company which, in turn, is owned by AIG) can convince its parent to furnish it with enough (government) funds so that it can “keep em flying!” Otherwise, will the last person out of Seattle, Renton and Everett please turn off the lights?
Let us continue praying!
Read the full analyst report on “ERJ”
Read the full analyst report on “BEAV”
Read the full analyst report on “LDSH”
Zacks Investment Research
Last 5 posts by Zacks Market Commentaries
- Steel Dynamics Raises Debt - Analyst Blog - March 19th, 2010
- DuPont Focus on Plant Genetics - Analyst Blog - March 19th, 2010
- Ford Receives Grants - Analyst Blog - March 19th, 2010
- HD to roll out Spring Black Friday - Analyst Blog - March 19th, 2010
- PPL Awards $70M Contract, Builds Jobs - Analyst Blog - March 19th, 2010
 About Zacks Market Commentaries (http://www.zacks.com/)
Zacks Market Commentaries |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.