BE Aerospace (BEAV) Breakout Message Board

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Technology Stocks : BE Aerospace (BEAV) Breakout

BEAV 64.47

0.0%

Apr 21 5:00 PM EST

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To: bemore who wrote (52)	12/7/1997 6:03:00 PM
From: JEFF CHAPMAN	Read Replies (1) of 210

There are several reasons, imo: 1. Loss of BA contract, as IFE was pivitol to growth. If BE cannot sustain initial AVOD customer, there surely must be problems I would think, as the other airlines may think also. 2. The Rockwell Collins aquisition of Hughes adds tremendous respectibility to Hughes, and puts a smaller player like BE in a weaker position. 3. BE is fairly leveraged financially. Any missteps due to this can cause events similar to what happened at IFT. You really have to be controlled by a much larger entity to ensure survival in this biz, as is the case with MAS and Hughes. 4. SE Asian weakness has already resulted in order pushouts for some unnamed IFE vendors ;)... IFE growth was centered around air traffic growth in SE Asia, economics may push that growth out 24-36 mo., meaning there are better places to put $$ in that time frame. 5. Production problems and Boeing snowball down to the vendor level also, which slows growth. Program delays result in a higher cost basis and lower profitibility for all in the airline business.

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