With news that Boeing (BA) expects its Dreamliner plane to fly by the end of the year, Cramer offered up a few ancillary plays, including Honeywell(HON), which he owns for his Action Alerts PLUS charitable trust; Alcoa (AA), "a giant maker of fasteners"; and Precision Castparts (PCP), which he said is "almost entirely aerospace."

Hold - Price 77.97 on July 21
by Jesup & Lamont

PCP reported fiscal first-quarter 2010 EPS of $1.70 on revenue of $1.40 billion, missing our forecast for EPS of $1.73 on revenue of $1.87 billion, versus the consensus of $1.75 on revenue of $1.62 billion. The miss was due to lower volumes in a volatile aerospace-destocking environment, and weak demand in general industrial end-markets. Despite weak end-markets, operating margins hit record levels of 26.8%, versus our forecast for 22.4%, mostly due to cost reductions....The quarter highlight was the record operating margins, but [end-markets still appear to be] under pressure. Thus, our model implies modest margin expansion, but lower than in...F1Q10. We highlight the difference in our margin expectations, as they remain the driver for the stock. It is hard to bet against this management team (one of the best in the space), but we believe, given the weak economy/pressure on [original-equipment-manufacturer] build rates, it is good to be prudent. Management acknowledged continued pressure on end-markets. Market cap: $10.8 billion.

employer

Mad About Options: Guarded on Google:
The Mad About Options crew reviews Jim Cramer's recent bearish comments about Google and offers options strategies for traders and investors. Also hear options ideas for Precision Cast Parts and Microsoft.

Click here to watch the video.

From a recent Mad Money show: "I went negative on PCP after Boeing went on strike. I'm lightening up on PCP."

Third is Cramer favorite, Precision Castparts (PCP). Cramer said the company gets 17% of its sales from Boeing and will take a 1.7% earnings hit if the strike lasts a month.

revenue has grown nearly 30% annually for the past 5 years, while the effecuent operating model has boosted operating profits 40% per year. A very strong balance sheet and efficient operating model should sustain decent returns on capital over the next 5 years

The stock has a PE of 13 , a PEG of 0.68 , and pays a yield of 0.1%

looking for an upgrade cycle

From a recent Mad Money show:

"PCP is just a buy here. People are negative on aerospace, but they're missing the fuel savings part of the business and PCP is part of it."

I bought this stck with the hopes of Boeing finally getting thhat plane off the ground. well that din't happen and i am burried in this stock.

great earnings. good chart

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