Why is Goodrich GR stock going down so much?

Question

What level should I buy at?

Answer 1

Its probably worth about $30, I would keep my cash and keep far away from wall street this days.

Answer 2

Goodrich supplies components systems and services to the commercial aviation industry and the defense and space market.    2007 sales were as follows:

Commercial aviation....75%

Defense and space.....25%

Because of the price of oil the commercial aviation sector is making serious cutbacks.  They are reducing flights which takes airplanes out of service.  This means less maintanance and fewer new planes purchased.   Quite simply 75% of their business is facing a substantial loss.  So far defense hasn't cut back in the US.  Will it?

When will GR be a good buy?  Not for a long time?  The changes in the airline industry could be permanent.  They (airlines) are using this as a cover to eliminate money loosing routes.  Even if oil goes down, they may continue to streamline their business.

Monitor the airlines.  When they begin to buy planes and add routes Goodrich will see their business pick up.  Until then their prospects are poor.   You don't have to watch oil, just keep it simple and watch their customers.

Answer 3

Looks like some analyst downgraded the aerospace sector.  This stock had a nice run from 40 to 75.  Still sells at a cheap P/E of about 12.  Oil is killing the airline industry in the US.  Also, with it looking like the Dems might take complete control of Washington, there will be a lot of noise on cutting the defense budget to pay for social programs.

This stock is a perfect example of why you can't just buy and hold stocks.  You have to continually examine the stock chart and take profits when you have them.  This stock is not overvalued, but it slowly slipped from $70 to where it now is and there was probably nothing wrong with their business other than the perception that things may change adversely in Washington.  I would wait until it stabilizes before adding more.  Don't just assume it will go back to $70 because it once traded there.  Bear Stearns once traded at $170.

Answer 4

High gas prices are causing the American people to drive much less within the confederation of the united states of America, de jure, while developing nations like China and India's middle class are now using the gas no longer being used by the Americans plus more. Most Americans are slowly becoming third world citizens, because of the hyper-inflation of hidden taxation caused by the illegal Iraqi War, which is a violation of international law.