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

Not very big yet, so they still have plenty of room to grow. The stock is cheap. Plus a pretty good dividend.

An Emerging Force in the Aerospace Arena -tmf

Demand for regional jets will continue to expand

AB BUY CONFIRMED. This plane will plain soar.

Better than competition on the planes they offer, more fuel efficient, more space, cheaper to run, good support. Increase in the flights in emerging economies brings business to Embraer, for example Azul Airlines in brazil which are expanding fast, uses Embraer planes, European airlines also use them for short flights, and business jets are a strong arm of ERJ. There is also their aircraft leasing business with deals all around the world, including stable partners such as the Brazilian air force. I think this is a good play long term.

outperform

Short route demand will continue. Low price point of aircraft and SouthWest/Airtran merger. Great position...

Coming out of the recession, with increases in sales and profits, ERJ should outperform the S&P over the next few years.

I really like this company for it's military segment. I expect the highly regarded Super Tucano will find it's way into more airforces in the region over the next few years. I also think once the KC-390 goes into production it will have strong domestic and international demand as a low cost alternative to many countires aging C-130 fleets. Strategic airlift capability is painfully lacking in many countries around the world participating in NATO and UN peacekeeping missions. I expect over the next decade Embraer could be one of the main companies filling that gap.

Major established player in the regional jet business left alone by Boeing and Airbus. Competition from China's emerging commercial jet manufacturing business could affect ERJ with Brazil's smaller economy.

Nowadays, Embraer is being sold almost as its book value (at least here in Brazil).
The reasons to be optimistic include: the FX2 project of the Brazilian Air Force will give Embraer access to high technology in order to build jet fighters (probably will be the French Rafale) AND rights of exclusivity to sell them to Latin American and African markets. Besides, this technology should be used in commercial airplanes too.
In the short term, Embraer fired several employees last year, due the economical crisis, and benefited the reduction in the costs in the last quarter. These effects, I believe, should continue in the quarters to come.

I don't like the aircraft much.

Showed up on a screen for solid 5 year growth with low debt, cash on hand and still at attractive P/E ratios.

They have orders for all the airplanes they can build for the next year.

airlines are toast in this evironment-- brazil attempting to cut rates on all industrial companies bit it wont help erj in the short term--

I have always admired Embraer's ability to design, certify, and sell high performance aircraft. It's hard to believe that this little company has gone from being a virtual unknown in the NA market in turboprops to a leading contender in the short-haul and regional markets. In particular, Embraer and Bombardier stand to inherit the market for narrowbody short haul jet traffic with their offerings like the E-jet series and the C-Series. ('Regional' in this case to me means anything that you would've taken an MD-90/DC-9 in the past for.)

The global recession together with the slow down in air traffic, will hurt all plane manufacturers this year. Once the crisis is over, this is a stock ready to outperform the market, but not now.

a solid airplane manufacturer who will rise as the economy recovers

Airlin industry will improve next year, ERJ should benefit.