The K-Call has been analyzing the airlines since its inception in June. The industry is simply getting it right.
The second derivative play could be to review the makers of the jets for your portfolio. I am going to take it to the third derivative to capture a sizzling emerging market, and in doing so, connect to our guest today on The Strategy Session.
Embraer-Empresa Brasileira de Aeronautica SA (Embraer) is the whopping full name of the company that trades by the ticker, "ERJ."
Manufacturing commercial aircraft, Embraer is weaving into the fabric of the Brazilian economy. As a supplier of defense aircraft for the Brazilian Air Force, it's been able to develop a global presence as well, selling parts to other countries' armed forces.
But it's the new line of executive jets that has really caught my interest. This is a lucrative area that Embraer is capturing with striking efficiency.
The line is doing so well that I considered inducting ERJ into the "One-Decision Club," but I am reserving that decision until valuation and growth prospects can be properly evaluated. But the company is certainly one to watch.
We also welcome to the show today, Will Landers, portfolio manager at BlackRock with concentrated focus on Latin America. The timing is ideal to ask about Embraer, and I hope you will tune in to get his views.
"One-Decision Stocks" are rare, so even to be considered warrants attention. The airline industry has been so successful of late that companies like Embraer deserve a careful look.
ERJ just might be ready for take off.
Programming note: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.
Gary Kaminsky does not hold any equity positions.
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