3/23/2009
HEADLINES
B/E Aerospace a “Screaming Bargain”
B/E Aerospace garnered high-profile attention from an investment advisor at Forbes magazine. “It doesn’t pay any dividend, and debt is half its total capitalization,” writes Vahan Janjigian of Forbes, who noted the stock is down 80% in 12 months.
“However, B/E is also a leading distributor of aerospace fasteners, bearings, seals and gaskets found in both commercial and military aircraft.”
Almost 60% of B/E revenue in 2008 came from aftermarket and military demand.
Janjigian noted B/E has a $2.9 billion backlog, up 32% from 2007. Because B/E is more reliant on civilian aircraft than my other recommendations, it’s more risky, he wrote.
“But I’m willing to take a risk because I think B/E will earn $2 per share in 2009, making it a screaming bargain at 3.5 times forward earnings.”
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