Thursday, May 29, 2008
What's up with BE Aerospace?
I've been surprised by the drop in BE Aerospace (BEAV) over the last week. Today it closed at $32.72 which is not much above its 52 week low. I'm sure the reason it's getting bid down is because most of the domestic airlines are getting hurt by high oil prices. To me, that view is pretty shortsighted. When I first started looking into this stock, I was interested because the components they make for planes are lighter and in higher demand since companies are looking for any way to cut costs. However, as I started to study the company more, I found that they have a lot more going for them than just making light weight seats. It turns out that they have several divisions and I believe all of them stand to benefit in the current environment. I have recommended this stock twice before with an average price of $36.08. The stock traded into the low 40's after my last recommendation before the recent pullback. Today I'm recommending buying BEAV again which gives us an average price of $34.96. I look forward to selling this stock for a profit in the future.
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