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There’s nothing that I could say to start off this post that would clarify AAR’s position in their market right now better than what CEO David Storch said to start the 4th quarter and full year 2008 earnings conference call:

“Based on questions we have been receiving over the last several weeks, we believe the market may not fully appreciate the spread of business we have here at AAR.

In many quarters we are merely seen as an airline aftermarket provider. While that was more true earlier in the decade, today AAR is a much broader company servicing a wider customer base.”

Therein lies the beauty of the diversification in AAR’s business, and their ability to leverage that business, even in tough times like now, to come out stronger and better positioned to take market share from competitors, as well as capitalize on their growing revenue to defense and overseas customers.

AAR Corp. (NYSE: AIR), provides products and services to the aviation, aerospace, and defense industries worldwide.

In this post I’ll be breaking down their full earnings release, as well as analyst conference call, and round out my post with the reasoning behind my upgrade.

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While a rising tide lifts all boats, the opposite also holds true.

Such has been the case with PeakStocks.com portfolio recommendation AAR Corp. (NYSE: AIR), which provides products and services to the aviation, aerospace, and defense industries.

Lately the words “aviation”, “aerospace” and “defense” have been about as popular as uttering the phrase “oil prices are higher”.

You can’t always escape the boom or the hammer that befalls a certain industry or sector, even if it appears that AAR is more protected from these concerns than other companies within its industry.

As a result of this and AAR’s upcoming earnings release in about 2 weeks, I am downgrading AAR’s shares to a HOLD if only temporarily, and for new money, until we get more clarification as to what’s going on with the industry, the companies that depend on AAR for business, and AAR’s business prospects for their 2009 fiscal year.

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I wanted to update you on the latest news and info on a couple of the companies in the PeakStocks.com portfolio:

• The first is AAR Corp.: The pain continues for PeakStocks.com portfolio recommendation AAR Corp. (NYSE: AIR), as the company plunges to new 52-week lows virtually every day. I’ll tell you why, and what we’re going to do about it.

 

• The second is uWink, Inc.: It looks like we have a little bit more clarity from uWink (Nasdaq: UWKI.OB), concerning their latest 2 restaurant locations that are scheduled to open later this summer. I’ll give you a quick update on the latest locations and when they are expected to open.

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Boeing Gives AAR a Begrudging Acknowledgment

I suppose we can all breath a collective sigh of relief to the news that Boeing (NYSE: BA) has “officially” cleared AAR Corp. (NYSE: AIR) of any wrongdoing in their purported FAA violations in painting certain model landing-gear truck beams in ways that were not kosher. Read the rest of this entry »

FAA Finds Landing Gear Not Properly Maintained

One of the cogent risk factors when dealing with a company like AAR is the very fact that they are intimately intertwined with many important aspects of airline maintenance and repair, and as such, are responsible for the work they perform on these planes and anything that may go wrong with the work they do.

Along those lines, on March 25th, the FAA issued a Unapproved Parts Notification (UPN) letter that stated that during a multi-year investigation, which lasted from the start of 2001 through Nov. 26, 2007, the FAA found that the AAR landing gear service center in Miami “improperly maintained and approved for return to service” parts used in Boeing (NYSE: BA) 707, 747, 757 and 767 planes. Read the rest of this entry »

Well, here we go again: AAR Corp. reported earnings after the market closed on March 18th, 2008, and needless to say, my investment thesis is playing out just as expected with AAR reporting another quarter of record revenue and earnings, while beating analysts estimates on both the top and bottom line.

I’ll give a more detailed breakdown of AAR Corp.’s earnings, margins, etc., but I wanted to provide some quick numbers, and conference call and earnings highlights, as well as talk about their latest acquisition. Read the rest of this entry »

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For no good reason our stocks are getting hammered…I can’t take this anymore, I’m starting to panic…

Ok, sorry about that, just wanted to get your attention.

There’s been no panic on my side of the coin with the PeakStocks.com recommendations, but I can see from the comments and hesitation that I am reading out there, that some of you may be.

So to allay any fears, concerns or questions, I decided to post a quick update on not only the philosophy of PeakStocks.com, but some direct commentary on the stocks in the portfolio. Read the rest of this entry »

AAR Corp’s (NYSE: AIR) recent earnings report and analyst conference call was nice and boring, just the way I like earnings reports to be.

Within the “boring” report, there were some interesting highlights and year over year improvements to the company’s margins, bottom and top line, and overall improvements in the business that further strengthen AAR’s position in the marketplace and my investment thesis for shares of AAR corp. Read the rest of this entry »

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