In Play: BZC (Breeze-Eastern Corp)

Once in a while I find stocks that are not only great trades but also longer-term trade or investment material. When I look for longer-term trades or investments, I search for companies with improving earnings, sales and future growth. I also look for a stock that has a promising chart or chart pattern, accumulation, volume increases. Basically, I look for CANSLIM quality stocks. The stock that I found is BZC. It is not quite yet a top CANSLIM pick but it could be. I like BZC for many reasons. Decent insider ownership, small mutual fund ownership (room for improvement), 6 million share float, and no Yahoo Message board spammers (it doesn't even have a MB). The stock has great earnings growth (70% YOY), strong sales (IBD gave them a B), and the RS is improving. In addition, the chart is also improving. Looking at the chart, this seems to be an ideal buy point for BZC. By buying at this level you can minimize your down-side risk. So what does the company do? BZC is a manufacturer of rescue hoist systems, cargo-lifting equipment and weapons handling systems. Interestingly enough, the company is a leader in helicopter-based hoist and cargo hook technologies as they encompass over 50% of the world market for these products. With our country at war and a demand for the lifting and hoisting products to rescue troops, deliver meds and food products, BZC is a no brainer in the fundamental and investment potential department.

Breeze-Eastern Corp (BZC - AMEX)