Magellan Aerospace Corp (MAL) New Listing Message Board

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Gold/Mining/Energy : Magellan Aerospace Corp (MAL) New Listing

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To: Serge Collins who wrote (454)	12/6/1998 11:47:00 PM
From: thomas gentry	Read Replies (1) of 633

Hi Serge. Boeing's execs face two challenges.... rebuild top line sales and preserve bottom line earnings. With respect the top line, I agree with you. Awarding more contract sales will not solve their problem. Only increased sales will address that one. But the bottomline? Sure, Boeing will be buying less overall product over the next few years, but they'll be "filtering" their suppliers like never before. The big overall winners through this "process of selection" will be low cost, high quality companies like Magellan, largely thanks to our cheap looney. Last week's 15.3% sell-off focussed solely on the Boeing issue. It's by that measure that I feel the drop to $6.90 was way overdone. Recall that my $7.50 valuation was determined on a worst case scenario in which Magellan would LOSE 7.5% of their sales based on Boeing blindly cutting back all their suppliers across-the-board. Again, much too pessimistic once you factor in MAL's Canadian dollar advantage. As to the tax issue, that's a problem for another day. Thomas

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