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Technology Stocks : BE Aerospace (BEAV) Breakout -- Ignore unavailable to you. Want to Upgrade?

To: Piotr Koziol who wrote (127)	1/19/1999 1:42:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 210

The Co. is going through a period of estimate cuts and analyst downgrades - because Boeing is going through a change in the product mix to short-haul planes (less 747s ordered and more 737s ordered) BEAV is negatively effected because providing furnishings for the 747 is a higher-margin sale. The industry in general is changing & BEAV will have to adapt or restructure in order to maintain growth previous levels. The downgrades and price weakness are thus warranted, but in all fairness it shouldn't go below the mid teens. There are still many brokerages with strong buys out on BEAV, so when they downgrade a notch the stock may take another hit. As of a month and a half ago, when Boeing came out woth the news, BEAV had 10 brokerages with strong buy recommendations - I believe no more than 2 have downgraded since, so there's possibly more turmoil to come, though it may be already priced in.