This is from GameChangers and mentions the Suprt Tacano and Embraer
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Stock Superstar #9: Profit as Flight Demand Soars in Latin America
The economic growth and expanding middle class in Latin American and other nations around the world, is also a real opportunity for airplane manufacturers. Flight demand is also on the rise, as is the need for smaller aircrafts that carry passengers between smaller cities as well as to larger hubs.
Regional jets are smaller, more fuel-efficient aircraft used in shorter flights that account for 20% of all commercial airlines services. They are especially valuable in carrying a smaller number of passengers cheaply to a hub, where they board a bigger jet for a longer flight that is more profitable for the airline.
Embraer (ERJ) is one of the dominant players in regional jets and the company is strongly focused on growth opportunities in emerging markets. Regional jets are the company’s main bread and butter right now, bringing in 65% of revenues. Embraer is known globally for its innovative jets, and since 1996, it has delivered over 800 of them to 45 different airlines in 30 countries.
Embraer’s second-biggest division is executive jets used by corporations that accounts for approximately 20% of the company’s revenues right now. ERJ has sold eight executive jets to Indonesia since 2004, ranging from $9.5 million to $54 million.
ERJ’s third unit is defense aircraft, which makes up about 14% of total revenue at the moment, and I see a lot of potential here. In the most recent quarter, revenues from this division rose 37% and the growth is just beginning. Embraer provided half of the Brazilian Air Force fleet and also provides products to 20 foreign air forces.
ERJ’s jets are also used by the Brazilian government for policing the Amazon for drug trafficking and illegal logging. ERJ recently sold its first Super Tucano to the United States, and expects to sell more to other NATO countries. The KC 390 transport jet, which the company developed with the Brazilian government, is also expected to be a major part of the defense segment.
ERJ is gearing up for the next leg higher. Don’t wait a moment longer, get in now while you still can.