Friday, April 27, 2007

BEAV For Friday

I like BE Aerospace (BEAV) going into earnings today. BEAV provides interior services to an array of different types of airplanes. The stock is marginally up after a series of airline stock downgrades, leading me to believe that many are confident this airline services provider will beat the street. I am confident in BEAV because of the run-up in airline producers and the high demand from these companies. Stocks like Boeing (BA) have shown significant capital gains and high dividend payments throughout the last year.

Another attractive aspect of the stock is the recent success in earnings. The company has beat the analyst expectations five out of the last six quarters and shares have advanced the next day after each of those reports. I am a strong believer in prior success translating into excellent future results. The only risk in playing this stock is a relatively high P/E and six month run-up, leaving the stock susceptible to a sharp downturn.

Personally, I am willing to take on the risk given the history of success. Good luck.

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