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 firstname.lastname@example.org; he does not own securities in the companies he covers.