Boeing Suppliers Not Chasing Boeing News (BA, SPR, BEAV, HON, COL, LMIA, TIE, PCP, GE, ETN, PH, BW)

247wallst — Thu, 27 Aug 2009 15:15:25 +0000

This morning’s news out of Being Co. (NYSE: BA) about the 787 Dreamliner setting a maiden flight date before the end of this year and scheduling preliminary deliveries into Q4-2010 is really getting the love put back into Boeing shares. In mid-morning trading the stock is actually up over 7% or $3.50 at $51.32 and it has already seen its average daily volume surpassed. But where this gets interesting is that so many of the key Boeing suppliers for the 787 Dreamliner are trading down. Precision Castparts (NYSE:PCP) and Spirit Aerosystems (NYSE:SPR) are both up significantly with the news and Rockwell Collins (NYSE:COL) is up, but the rest of the lot is either up marginally or is trading lower with the overall market.

Spirit Aerosystems (NYSE:SPR) is the ex-Boeing unit, which makes fuselage parts; its shares are up 7.5% at $15.85.
BE Aerospace (NASDAQ:BEAV) has cabin and seating contracts with Boeing; its shares are up 0.1% at $17.65 on low volume.
Honeywell (NYSE:HON) has the cockpit award; its shares are up 0.25% at $37.21.
Rockwell Collins (NYSE:COL) has information management pacts with Boeing; its stock is up 2.5% at $46.15 but not on active trading volume.
LMI Aerospace (NASDAQ:LMIA) has Boeing as principal customer for structural components, assemblies, and kits; its stock is up 2% at $9.21 but on very thin trading volume.
Titanium Metals (NYSE:TIE) has long-term Boeing titanium/metals supply pacts; is down some 0.6% at $8.01.
Precision Castparts (NYSE:PCP) manufactures aerospace structural castings, aerospace airfoil castings, industrial gas turbine castings; this winner is up 7.7% at $93.50 on the news.

General Electric Co. (NYSE: GE) is too diversified to be a single news reaction-event stock has engine exposure here with the GEnx, but its stock is down 0.8% at $14.00 along with the broader market. Elsewhere…. Eaton Corp. (NYSE: ETN) is down 1.6% at $54.47, Parker Hannifin Corp. (NYSE: PH) is down 1.4% at $49.07, and Brush Engineered Materials (NYSE: BW) is down over 4% at $22.15.

The DJIA, which Boeing is a component of, is down some 77 points at around 9,465….. Boeing is currently only one of 2 of the 30 DJIA components up late this morning. If it were not for this rise in Boeing, the DJIA would be down closer to triple-digits.

JON C. OGG
August 27, 2009

Posted in Aerospace, Trading Alert, Transports Tagged: BA, BEAV, BW, COL, ETN, GE, HON, LMIA, PCP, PH, SPR, TIE

Cramer Outlines Long-Term Growth in Aerospace

247wallst — Wed, 06 Jun 2007 13:37:21 +0000

On today’s Wall Street Confidential video on TheStreet.com, Jim Cramer says that aerospace stocks are great buying opportunities on down market days like today and yesterday. Aerospace is tied into a long-term cycle, not really part of the stock market. Honeywell (HON) is even better than Boeing (BA). BEA Areospace (BEAV) is great on the interiors for planes. Other great aerospace plays he gave were Brush Engineered Materials (BW), Allegheny Tech (ATI), Precision Cast Parts (PCP), and AAR Corp. (AIR). He also gave some defense names, but the main point was on the long-term growth trends.

For some conjecture, let’s hope that idf things ever slow down too much that waves of order cancellations don’t come into play like they have in past down-cycles. If that happens, Cramer will probably remember that these aren’t permanent growth engines. To prove a point, BEAV traded well under $5.00 at the lows during the last down-cycle in the sector.

Jon C. Ogg
June 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

24/7 Wall St. » BW

Boeing Suppliers Not Chasing Boeing News (BA, SPR, BEAV, HON, COL, LMIA, TIE, PCP, GE, ETN, PH, BW)

Cramer Outlines Long-Term Growth in Aerospace