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$18.28 0.15 (0.83%)
1/9/2009 4:01 PM

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

CAPS Rating:
*****

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.

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Recs

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Avatar metoo105 (99.73) Submitted: 2/28/08 10:25 AM : Outperform Start Price: $44.45 ERJ Score: -23.64

Reasons to buy this stock:
1. Sector: aerospace order books are about as full as they could be
2. Subsector: small and very small LJs are the frigging future; meanwhile ERJ is slowing getting bigger and bigger, and while they are a far cry from competing with the Dreamliner, they might show up to rival the new 737s
3. Locations: in Brazil and China give a competitive advantage; ERJ will be for Brazil what Boeing has been for the US
4. High Energy Prices: everyone wishes they had already updated their fleets last year; smaller planes are easier to run at capacity
5. Mgmt: since I have watched this company, I have been impressed over and over again by the management.

Risks:
1. Recessions tend to hit aerospace especially hard. Counterpoint: . . .

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