Chandler Lutz

The Bear Market in Aerospace & Defense

Great Article...I am very bullish on the defense sector for the very long term (this is a China play no one really talks about)... I agree with many points that you make especially with regards to the political elections...I will making a wishlist of defense companies before the election...If Senator Obama wins it is possible that some of these stocks may decline to even more attractive levels (while the fundamentals will remain virtually unchanged)...I guess we'll just have to hope and wait and see...

Is Boeing Ready To Take Off?

Nice Article, but I am a little concerned about Boeing as a company. First of all, the company (especially in the defense industry) is not really producing quality products. They are a secondary contractor for the F-22, the border fence they built was a disaster, they lost the deal for the F-35 (which will likely end up being the largest military contract ever). As for the 787, yes I agree it has amazing potential, but as you said it has already been delayed three times. What happens when further delays arise? The stock will get hammered...

I like the growing backlog for the 787, but I'm not convinced that the "outsourcing" model they employed will be effective in the long term.

The one thing I think Boeing really has going for it is that Airbus is even more of a train wreck then they are. Since airbus keeps botching every project it undertakes Boeing has become a winner in many areas by default

Boeing for the Aerospace Recovery? Try LMI Aerospace Instead

Nice article about a company I did not previously know about. They look like they have some potential in this field, but just by reading this article I have a couple of questions. You mention their military unit, and that they supply parts to the V-22 Osprey, F-15, F-16 and F-18. This concerns me because the V-22 is a complete debacle and production should should be canceled and all planes should be put out of service. Also, the F-15, F-16 and F-18 are all aging planes that are likely to all be replaced in the next 15 years by newer and more capable F-35 which will be exported to every country in Western Europe not to mention and maybe some of our allies in southeast Asia. Also, you mention a strong relationship with Boeing, but what about Airbus? If this company supplied parts to both companies they would tremendous potential. The strong relationship to Boeing concerns me. The 787 is seeing delay after delay and their complacency with regard to the air tanker contract was quite discouraging....