BE Aerospace Should Continue To Reach New Heights

| About: B/E Aerospace (BEAV)

With Aerospace/Defense stocks and ETFs continuing to perform well, I thought BE Aerospace (NASDAQ:BEAV) would be a worthy stock to discuss.

About: BE Aerospace, Inc. manufactures cabin interior products for commercial aircraft and business jets, and is an aftermarket distributor of aerospace fasteners. Its product categories include commercial aircraft seats, including a line of super first class, first class, business class, tourist class and regional aircraft seats; a line of aircraft food and beverage preparation and storage equipment, coffeemakers, water boilers, beverage containers, refrigerators, freezers, chillers and microwave, high-heat convection and steam ovens; both chemical and gaseous aircraft oxygen delivery systems, protective breathing equipment and lighting products; business jet and general aviation interior products, a line of executive aircraft seats, direct and indirect overhead lighting systems, oxygen delivery systems, air valve systems, furniture and cabinetry, and a line of fasteners. In September 2006, the Company acquired New York Fasteners Corp. On July 26, 2006, it acquired Draeger Aerospace GmbH.

Fundamentals: BEAV is a company on the mend and getting healthier by the minute. After a long five year slide which culminated in losses in '02 - '04, the company turned it around in a hurry in '05 with a profitable year and hasn't looked back. In '06 sales growth has been accelerating while earnings have nearly doubled in the past year. The company continues to pay down debt, margins are solid and ROE is outstanding. Both margins and ROE have improved dramatically in the past 2 years and continue to rise.

BE Aerospace (BEAV) reports earnings on Monday, February 5th.

Technical: After soaring from just over a buck a share in 2003 to 30 in 2006, the stock is breaking out from its largest base since that run and looks poised to test all time highs around 40 which it touched nearly 10 years ago. The first break and buy opportunity from its current base occurred a few weeks ago on Jan 8th. The stock busted out from a short consolidation this week hitting a new multi-year high.

Disclosure: Author currently does not hold a position in BEAV.

BEAV 5-yr chart:

BEAV 5-yr chart