Edac Technologies (EDAC)

[MikeDDKing]

I picked up a few shares of SIF today and I thought I would post about it here so that we could compare it to EDAC.ob. They are both aerospace product and services companies. SIF just posted earnings of $0.57 from continuing operations (not taxed) vs. a share price of $17.35. They are in the process of shedding a few parts of the business that are not profitable. In Q1 their Aerospace Component Manufacturing group had sales of $14.5M vs. $21.5M in sales for the entire company. The backlog for this segment of the business was $81.7M vs. $65.7M at September 30, 2006. A full $61.2M of this business is scheduled for delivery over the next 12 months. That would seem to indicate that the company has even better results coming. They are trading at a PE of 11 based upon annualized continuing operations after adding a 33% tax rate. Likewise, if we annualize EDAC's earnings of $0.16/share, EDAC is trading at a PE of 10.25 so it is a slightly better value based upon the current quarter's earnings. SIF also has had a steep increase in price since their earnings report so possibly is a bit more susceptible to a downdraft. Both companies will have earnings growth but I'm not sure which companies growth is expected to be larger.

I'd be curious to hear what others think.

Mike