Stockchase Opinions

David Taylor, MBA, CFA Embraer EmpresaBrasileira ERJ-N TOP PICK Apr 15, 2003

No debt. 7.5% dividend yield. Trades at 5 X earnings Military side does well.
$13.550

Stock price when the opinion was issued

transportation equip & components
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

PAST TOP PICK
(Was a top pick on Apr 15/03. Up 6.5%.) Still likes. Dirt cheap.
BUY
Getting some good contracts.
BUY
Getting some nice contracts.
BUY
Extremely profitable.Have a new line of 100 seat aircraft.Prefers over Bombardier.
BUY
Prefers over Bombardier. Is at half the valuation and better run. Completely clean balance sheet and better yield.
BUY
Has done very well. Not only continuing to build 60/70 seats planes, but are now building new 100/110 seat regional jets, which are very popular. These planes will continue to see increased sales.
DON'T BUY
No one makes a lot of money building civilian aircraft.
DON'T BUY
Brazil’s very strong currency is not helping them in their exports. Airplanes are highly discretionary items. Could see a cut in dividends as a possibility.
SELL
Since 2002, the company has had a declining path of returns. Returns now are below their cost of capital because of currency.
HOLD

In the space, he owns GE (it's now purely jet engines after the spinoff). Also owns ERJ, which has an opportunity to win significant market share.