Embraer ( Empresa Brasileira de Aeronutica SA - ERJ) is a major Brazilian aerospace manufacturer. But don't let the fact that it's based in a developing economy deter you from this opportunity. The fact that the company mainly exports to places like North America and Europe means that the company isn't as exposed to the volatile fluctuations in Brazils economic situation. The company is one of Brazil's major exporters, and could benefit enormously from Brazil's growing economic and trading power (Brazil currently has a trading surplus of US$30Bn, rather than a trade deficit , as it had in the 1990s). In the event of an increase in the popularity of aviation or tourism in Latin America, Embraer could benefit.
The airline manufacturer has recovered well from the September 11th attacks which damaged the industry, and the share price has since grown from $13 to $46 and has managed to continue paying dividends through the troubled period.
$45.5 (12/30/07)
