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Non-Tech : Gulfstream Aerospace GAC -- Ignore unavailable to you. Want to Upgrade?

To: Mel Spivak who wrote (84)	2/10/1998 3:10:00 PM
From: Creighton C. Smith	Read Replies (1) \| Respond to of 197

> Nice #'s Why so much better than last year? Caveat: I am long GAC. Gulfstream is in the middle of a successful turnaround. Improved numbers are largely attributable to margin improvements and greatly increased production. Q4 & FY'97 EPS beat analysts expectations, and management stated that they expected FY'98 EPS to come in at about $2.85, well above current analysts' estimates of $2.44 (Zacks consensus). > Why will things keep up at this pace? 1} Margins should continue to improve as company gets better and better at making the new Gulfstream V (GV) long-range jet. 2) Management has committed to increasing production to 60 aircraft per year, and is, in fact, well ahead of schedule in achieving this goal. 1997 saw 51 aircraft delivered vs. 27 in 1996. 3) The market for long range corporate jets is expected to continue to expand. 4) In my opinion, the stock has been depressed due to concerns over management's ability to bring Gulfstream back from the ragged edge of bankruptcy. Now, with two years of increasingly profitable operation under their belts, management is no longer the question it once (quite reasonably) was to the institutional investors. Just my $0.02 __Creighton

To: Mel Spivak who wrote (84)	2/10/1998 4:10:00 PM
From: Carmine Cammarosano	Respond to of 197

the aerospace industry is hot because the economy is hot!

To: Mel Spivak who wrote (84)	2/11/1998 9:03:00 AM
From: Carmine Cammarosano	Respond to of 197

Upgrades are starting to come in...Morgan Stanley is increasing the price target for GAC...I knew that the upgrades would come soon...I can't believe this thread is so quiet...lots of money to be made with GAC...it should see $40 by summer, no problem...

To: Mel Spivak who wrote (84)	2/11/1998 10:12:00 PM
From: Carmine Cammarosano	Read Replies (1) \| Respond to of 197

The company ended the year with a firm contract backlog of 88 aircraft, or about $2.8 billion in future revenues. Chairman Theodore Forstmann said the company was on track to boost annual production to 60 planes by 1999. In 1997, it delivered 51 aircraft, compared to 27 aircraft in 1996. In the fourth quarter, Gulfstream delivered 14 aircraft, from seven aircraft in the fourth quarter of 1996. Gross margins are expected to continue to improve, the company said, after they rose to 22 percent of revenues in the 1997 quarter from 22.1 in the 1996 quarter.