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Green Light For Risk Assets
Wed, Oct. 29 • 2 Comments
- Weekly Commentary on the Financial Markets.
- Risk assets, such as equities and high yield bonds, rally as investors regain their appetite for risk.
- Investors ratchet up risk despite fresh evidence that economic growth abroad is slowing.
Precision Castparts: The Smartest Way To Play Airlines And Aerospace
- PCP can increase revenues by 12% and EPS by 13%, on average, annually for the next five years. Given those estimates, the forward P/E ratio of 17.5x is too low.
- The commercial aerospace industry is in the growth phase of an airline order cycle; aging and fuel inefficient jet engines will continue to be replaced by modern technology.
- PCP has 50% more dollar content on new engine technology.
- The PCP business model features high levels of recurring revenue from replacement parts on existing jet and industrial gas turbine engines.
- By focusing on hard to replicate high-end content, PCP has high barriers to entry and enjoys a dominant market share in the areas it services.
QE2 Party Is Over - What Now?
Jun. 3, 2011 • 2 Comments
- Is It Time to Buy Google?
- Alternative Fuels Make a Good Alternative Investment
- Higher Oil Prices Mean It's Time to Sell Oil Sensitive Stocks
- TD Ameritrade May Have More Room to Run
- Consumer Rebound Temporary or Not? Either Way, TJX Benefits
- Patient Investors Take Note: ING Is Cheap
- DirecTV: A Performer for a Bargain Price
- Chicago Bridge & Iron: Huge Backlog of International Business