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Aaron Foster, CFA

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  • Precision Castparts: The Smartest Way To Play Airlines And Aerospace [View article]
    First off, you are correct in your initial interpretation of that particular passage in my report pertaining to pricing power. It's an unfortunate reality, and mostly due to the size and power of their concentrated customer base. However, as I pointed out, I don't necessarily see this as being as large of a deterrent as I may in another company's case because of PCP's history of more than offsetting this depreciation.

    Secondly, while I must admit I'm not an expert on Transdigm, the key differences that led me to having such strong conviction on PCP are: 1) PCP will benefit from a once in a multi-decade opportunity within the massive jet engine replacement cycle where they have higher dollar content on new engie tech than ever before, I noticed Transdigm would not necessarily benefit from this rare cycle as much considering their product base, and 2) I'm personally uncomfortable with the level of debt on Transdigm's balance sheet. Perhaps I'm being a bit conservative, but I tend to avoid company's with the level of debt/equity or debt/asset ratios I see with Transdigm.

    I hope this answers your questions. Thank you for reading and commenting on the article!
    Apr 25 11:00 AM | Likes Like |Link to Comment
  • Alternative Fuels Make a Good Alternative Investment [View article]
    Engine is written with "quotation marks" around it...not supposed to be interpreted literally. I should have been more clear or not tried to be funny. Thanks for reading
    Mar 25 06:03 PM | Likes Like |Link to Comment