HEICO Incorporated (HEI)

Sector: Industrial Goods

Industry: Aerospace/Defense Products & Services

Website: http://www.heico.com

Description:

HEICO Corporation, through its subsidiaries, engages in the design, manufacture, and sale of aerospace, defense, and electronics related products, as well as in the provision of related services in the United States and internationally.

Its Flight Support Group segment offers jet engine and aircraft component replacement parts. It manufactures thermal insulation blankets primarily for aerospace, defense, and commercial applications; and provides specialty components as a subcontractor for aerospace and industrial original equipment manufacturers, and the United States government. This segment also distributes hydraulic, pneumatic, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets. In addition, it provides repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft.

The company’s Electronic Technologies Group segment offers electronic, microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical and back-up power supplies, electromagnetic interference and radio frequency interference shielding, high power capacitor charging power supplies, amplifiers, photo detectors, amplifier modules, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems, and high-speed interface products primarily for the aviation, defense, space, medical, and electronics industries.

HEICO Corporation primarily serves commercial and cargo airlines, repair and overhaul facilities, other aftermarket suppliers of aircraft engine and airframe materials, military units, and electronic manufacturing service companies. It has strategic alliance with Lufthansa. The company was founded in 1949 and is headquartered in Hollywood, Florida.

The following table shows key indicators from 2009 of Heico Corporation with comparables:

Reasons to buy:

· Recently announced stock split at a 5 to 4 ratio. Takes affect 4/27.

· 4% profit and revenue increase in Q1 2010.

· Two 4 star and one 5 star rating from top-ranked analysts.

· Acquisition of dB Control by its Electronics Technologies Group

Reasons to sell:

· Recent anti-nuclear and peace agreements; results in less military contracts

· Downgrades from top performer ratings to neutral

Sources:
http://finance.yahoo.com/q?s=HEI
http://quote.morningstar.com/stock/s.aspx?t=hei