Alex Filonov's  Instablog

Alex Filonov
Send Message
I was born in 1956 in USSR. After graduation from college in 1979 I worked full-time as an IT specialist. Until 1990 I worked for different companies in the Soviet military industrial complex. I created a small software business in 1991, which failed in 1993. I worked for Oracle Corp in 1995 in... More
My blog:
Muddling Investor
  • Why I Bought Airbus 0 comments
    Jan 24, 2014 11:27 AM | about stocks: EADSY, BA, ERJ

    My apologies to my readers. I promised article yesterday, but writing it now, about 10 AM Central time.

    So why Airbus (OTCPK:EADSY)? Well, try to find another industrial company which has orders for 8 years ahead. I know another one, Boeing (NYSE:BA), but Boeing is in US, and one of my investment theses is that Europe just started recovering. So if there is a choice between similar US and Euro companies, I choose Europe.

    When I'm looking at Airbus (and at Boeing for that matter), I ignore all noise about new exciting products (A350, Dreamliner etc.). What matters is core business. Core business of Airbus is A320 family. Company has backlog for 8 years at least. Producing 42 aircraft a month is not enough, so company is going to increase output.

    As usual, I can't ignore dangers. First of all, it's competition from Boeing 737. But demand is so great, there is a place for both companies (BA also has about 8 years backlog). Second danger is from Bombardier (BORAF) and Embraer (NYSE:ERJ), both of which are developing their own 120 seat aircraft. This danger is not significant so far. Reasons: planes are not ready yet, they only compete in part of A320 segment, A320 has a very good history with airlines.

    Disclosure: I am long EADSY, .

    Additional disclosure: I have no positions in other stocks mentioned. Positions can change any time.

    Stocks: EADSY, BA, ERJ
Back To Alex Filonov's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Sold some $FB Mar 15 $80 covered calls and Mar15 $72.50 puts
    Jan 29, 2015
  • CLosed $LRLCY. Will buy back at lower level
    Jan 21, 2015
  • Added to $SAN
    Jan 7, 2015
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.