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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Ashley800 who wrote (14472)	10/3/2001 7:23:37 AM
From: Tom Hua	Respond to of 19633

Good morning Ashley, the question is how much will BEAV's new potential biz to retrofit cockpit doors makeup for the loss of its core biz as a result of the severe slow down in the aerospace industry. One concern I raised while I was long was BEAV's very high debt loads. Last quarter, debt amounted to 75% of net capital. Debt interest payment ($14 million) was more than half of total operating income last quarter. Because of the slump in the airline industry and BEAV's core business, interest expense could approach its entire operating income this quarter. Stocks like BA, UAL etc are still 40% lower than the pre-attack levels, so I don't think BEAV could return to its earlier mid-teens range and stayed there. At $5, BEAV was a screaming buy, in the teens it's a short, that's how I see it. That said, BEAV stock should continue to gather attention in the short term on the news of secured cockpit doors. Regards, Tom