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Park Aerospace Refresher
We first covered Park Aerospace (NYSE:PKE) back in January. As a reminder, this is a small cap company (at the time of writing, market cap $272m, EV $114m) serving a handful of mid- and large-cap customers, among them Aerojet Rocketdyne (AJRD - $3bn EV) and Lockheed Martin (LMT - $113bn EV). PKE provides high-end materials used in aerospace, space and defense applications - for instance the materials used to construct hypersonic missile re-entry vehicles, or the materials used in rocket engine nozzles.
PKE has lagged the S&P500 on a total return basis over the last year. Rather surprisingly however, it has matched the market blow for blow during the recent descent into the abyss and rapid return.
Source: YCharts.com
This is where things get interesting, in our view. It's where real life meets Fedonomics.
No-One Thinks Equities Are Worth What They Were Worth in Q2 2019
Do they? Really?
Here's SPY over the last five years. You see two big corrections and rebounds, the Q4 2018 Taper Tantrum, and the Q1 / Q2 2020 Covid Correction. The former was not a real thing, it was just finance stuff. The second, that's a real thing. Like, big impact to Main St
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