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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Kauz who wrote (45478)	11/15/2011 9:02:47 PM
From: E_K_S	Read Replies (2) \| Respond to of 78525

Hi Kauz - Have you looked at Barnes Group, Inc. Common Stock(NYSE: B)? Flowing 787 deliveries a dream for CT suppliers hartfordbusiness.com October 2, 2011 From the article:"...Bristol manufacturer Barnes Group Inc., Farmington industrial-parts maker Edac Technologies and the Hamilton Standard division of Hartford's United Technologies Corp. are among Boeing's Connecticut component subcontractors for one of the world's largest passenger airliners...". ----------------------------------------------------- Here are the companies that benefit from the recent Boeing contract(s). finance.yahoo.com Barnes Group Inc. (B) may be a better "value" play with a PE of 14 and a much better debt profile than EDAC. Their operating margins at 9.1% and ROE at 10.09% are better than EDAC's 5.6% and 9.35% respectively. finance.yahoo.com I do like the play on the vendors that supply services to Boeing. UTX would be another one but it's a smaller play on Boeing because of it's size. However, UTX seems like a Buffet Buy especially with his recent GD purchases. You do get a better dividend with UTX w/ a 2.5% yield vs B's yield of 1.5%. Both of these companies fit my value criteria (UTX & B) so I will add to my watch list especially with Buffet's recent purchase in GD. EKS

To: Kauz who wrote (45478)	11/16/2011 12:18:54 AM
From: Paul Senior	Respond to of 78525

EDAC. It seems like the person is putting a trough p/e (which is a high number) on peak earnings for a company in a cyclical sector. That is, at trough when price is low and earnings are minimal, p/e is relatively large. When earnings are large in future, people have anticipated this and then anticipate earnings level won't be sustained, so p/e is often is relatively low when comparing that p/e to the company's historical p/e. Maybe it depends on your view where we are in the cycle. Stock has already moved up quite a bit from lows, so it's not like people aren't expecting good things soon from the company. finance.yahoo.com "I'm completely confident of my $15 price target by April". Confident of a target yes. Confident that the target can be achieved in the time frame, that is hope. We're talking about a small company where unforeseen events can really affect it. Plus the volatile stock market in general. No intent to dissuade you from buying the stock, Kauz. I am betting on the growth of aerospace -- both commercial airliners and private planes -- and I've bought and am holding stocks related thereto, as I've said. So in a sense, if the EDAC company does well and its stock moves up further, I expect that some of my stocks in this sector will be doing okay too.