Jeff Yastine Blog | Buy This Navy SEAL-Approved Investment | Talkmarkets
Editor, Total Wealth Insider
Contributor's Links: Banyan Hill Publishing

Jeff “JL” Yastine is the editor of Total Wealth Insider. He first joined Banyan Hill Publishing as editorial director in 2015, bringing with him more than two decades of experience as a stock market investor and financial journalist at the center of financial world ... more

Buy This Navy SEAL-Approved Investment

Date: Wednesday, November 1, 2017 3:51 PM EDT

It was 2009, and the U.S. Navy’s elite special ops SEAL teams needed an edge for their combat operations in Afghanistan.

We need a plane that can watch our backs and track the enemy with the latest, greatest surveillance gear, they said.

It needs to be a flying command post too, able to carry encrypted radio systems and tie into the data streams from the Pentagon’s drones.

Oh, and we want a plane that’s ideal for “close air support,” so the pilot can fly low enough, and slow enough, over the battlefield for hours at a time and rain down 3,000 pounds’ worth of laser-guided bombs and .50-caliber machine gun fire on the bad guys in a pinch — without hitting the good guys, who might only be a few dozen yards away.

The SEALs got the plane they wanted (four of them, in fact) — an odd-looking aircraft called the A-29 Super Tucano, a propeller airplane that, along with its classic bubble-top canopy for a single pilot, has the appearance of a throwback to World War II.

But the SEALs’ choice proved so battle-worthy that the little airplane has since developed quite a fan base in military circles throughout the years.

And if recent U.S. Air Force flight tests at New Mexico’s Holloman Air Force Base bear out the SEALs’ combat experience, you may just want to invest in its manufacturer.

Laying the Groundwork

As the Financial Times recently noted, Brazil’s Embraer (NYSE: ERJ) “is better known internationally for being the world’s biggest producer of 70- to 130-seat regional jets, with a leading position in the U.S. market.”

In its most recent earnings report, Embraer earned $0.41 cents a share, 9 cents more than analysts expected. With a price-to-earnings ratio of 12, the company trades at a valuation about half that of competitors like Boeing, Textron, Bombardier and others.

Embraer is pushing to take a bigger chunk of military defense budgets around the world. Figuring prominently into those plans is the A-29 Super Tucano.

1 2 3
View single page >> |
Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.


Leave a comment to automatically be entered into our contest to win a free Echo Show.