Aerospace/Defense – Major Diversified

Aerovironment, Inc. (Nasdaq: AVAV) – FYE 04/2017>

The time for high drama has arrived so hike up your knickers and get ready to find high ground. It seems that the company has made inquires into a purchase of KLX, Inc. (Nasdaq: KLXI) because they make some sort of aerospace fastener. On the KLX side, the company has announced that has engaged both a financial and a legal team to explore “strategic alternatives”. Can you spell increasing the offering price? I’m not sure how the deal would be structured because KLX also has an oil field services business, KLX Energy. Just as I don’t believe KLX wants to be soley in the engergy business, I don’t thing Boeing wants to own an energy services business. To me, this is the high drama. How much Boeing willing to spend to own a business they want, and a business they don’t? Things could get interesting quick, fast, and in a hurry with this one and while I wish I has a KLX position, the sideline position I currently own may be the best seat in the house,

The Boeing Company (NYSE: BA) – FYE 12/2017 – OVER VALUED – The stock is currently trading at levels above my most recent fair value estimate – Please See Linked Worksheet

Please note that worksheets are updated basis the most current SEC 10-K ANNUAL filing.