You were in fluid control with the one stock you got stopped out of earlier this week. Take a look at replacing it with one of the following four: BEAV, PCP, HXL, TDG.
BEAV is simply the best in seating for airplanes, mainly international business and first class seats for non-US airlines. They did do to me a mediocre acquisition of a Honeywell business which is adding some debt back to balance sheet but company is well-positioned. I like the CFO but distrust the CEO - have met both. Worst hit if oil spikes back as less flying hits them although some biz from creating lighter seats will offset. Biz jet biz will get hit.
On HXL, it is most expensive of major aero plays but has great diversification and, like BEAV, survived near death in early 2000s. I sat on an informal creditor committee back then and must say the current CEO really impressed me when he came on board. The old CFO, who was sharp, has left. HXL has major wins on the A380, A350 and secondary wins on the B787. While they are more of an Airbus shop, their content on the 787 is approaching some of the higher level food chain players because their stuff is just too good. Their wind energy stuff is also doing well. Heavy JSF defense work as well as some other military platforms (on most), strong wind energy biz (aided if oil goes higher), need for more fuel efficient 787 and A350 and pipeline tied to A380 should make them super-defensive in an oil spike.
On PCP, simply the best in casting and forging. Very reasonable value. Great grower. Have always delivered. Valuation and diversification should help in downturn.
On TDG, very, very niche oriented with by far the best margins in biz. Almost all sales to after-market. Very strong management team. May be least defensive/second least defensive (with PCP least) in group of four here but strong margins, strong positioning on certain parts, big military piece should protect them to large extent.
Jon |
