- Boeing – Barron’s cover story – Barron’s says Boeing has 35% in upside as its 787 Dreamliner begins to gain traction. On valuation, the company trades at a P/E of 17.7, while competitor EADS trades at 24. On a FY12 basis, BA trades at 14X, well below its 10-year avg of 22X. The company also has a 7.3 year order backlog, worth around $256B. Increasing military spending across various countries (Russia, Saudi Arabia, South Korea) is also likely to dampen the US budget cuts for BA.
- The US has one of the highest effective tax rates in the world, even after loopholes are considered.
- GCVRZ – pos. comments on the Genzyme CVR. Barron’s says it could have upside to ~$3.30-4 (at least 25% above current levels).
- LBO targets – Barron’s contains potential LBO targets from a recent UBS screen – AAP, ARO, DOX, AEO, ARRS, ARW, AVT, CA, PLCE, PSS, DSW, FINL, GCO, HRS, IM, JBL, LTD, LNCR, MHP, MW, MOLX, JWN, RSH, ROST, SAI, SEE, TECD.
- Commodities – Barron’s notes that the commodities slide this week was due to sentiment instead of fundamentals, particularly the negative Goldman notes. However, in the end prices will be driven by supply and demand metrics, although Barron’s notes that commods are due for a period of volatility.
- on has found religion on spending.
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