Shareholders of Motley Fool Stock Advisor recommendation Embraer
The initial order comes to $746 million at list price. Of course, list price is to airplanes what sticker prices are to Ford
So much for the headlines
On the surface, this is certainly good news for Embraer shareholders. The total potential value of $1.3 billion or so amounts to more than a fiscal quarter's worth of revenue at the Brazilian plane maker. (Salespeople, take the rest of the quarter off. Assemblers, get to work.)
Care to read between the lines with me, though? Looking farther afield, Embraer's gain would appear to be Textron's
Looking even further afield, the Embraer contract tells us that business is booming in the business-jet-rental industry. According to its website, Flight Options only has 130 or so planes in its fleet today. And now it wants to buy perhaps 150 more? Sounds to me like demand is increasing exponentially, which is good news for Raytheon, for Berkshire Hathaway
Seems Christmas may come early for a whole lot of people this year.