Embraer-Empresa Brasileir de Aero (ADR) (NYSE:ERJ)

CAPS Rating: 4 out of 5

Produces aircraft for commercial, corporate and defense purposes. The Company has obtained, developed and enhanced its engineering and technological capabilities through its own development of products and joint product development with foreign companies.

Recs

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Player Avatar ricardols2000 (< 20) Submitted: 7/1/2007 11:04:40 PM : Underperform Start Price: $47.87 ERJ Score: +22.77

ERJ will suffer due to the revaluation of the real.50% of the cost is in imported parts(engines and electronics) which will b enefit in Uss cost) but 50% will suffer due to internal cost increases(wages and raw materials such as aluminum,plastic,etc.Overall ,production will increase ,but productivity will suffer,with the introduction of the Phenom series.Finally the stock has over appreciated in the last two years and is due for a correction

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