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Gold/Mining/Energy : Magellan Aerospace Corp (MAL) New Listing -- Ignore unavailable to you. Want to Upgrade?

To: ted who wrote (451)	12/5/1998 8:58:00 PM
From: thomas gentry	Read Replies (1) \| Respond to of 633

Is MAL oversold? Boeing's (BA) bad news after Tuesday's close last week pushed their stock down 18.4% on anticipated earnings reductions of from 10% to 25% in 1999. Over the same period, MAL fell by 15.3%. Given the fact that Boeing represents only 30% of MAL's total revenues, doesn't a thumping like this seem a little overdone? Even in a worst case scenario where Boeing cuts 25% of its orders across the board, MAL would see revenue losses of only 7.5% (0.25 X 30). Based on last week's action, we might have expected MAL to drop to $7.50 by this assumption (certainly not the $6.90 it fell to on Friday!). However, do you think it is reasonable that a cost conscious Boeing would treat MAL in an "across the board" manner? Our weak Canadian dollar provides MAL a huge competitive advantage. A bargain basement supplier like MAL will not be high on Boeing's list of suppliers to be culled. My opinion is based on the following Reuters's article from last week. Give it a look and see if you too don't think that MAL looks like a good buy at $6.90. I would be interested in other opinions on this. Thomas marketwatch.newsalert.com