Our team at BloggingStocks works from anywhere and everywhere in the world, and I interrupted one of our great editors in the middle of Sunday brunch -- workaholic that I am -- and she was making French toast. How far would you go for the best French toast of all time ... how about Los Angeles to Portland? Even if I had access to that private jet, breakfast would probably be cold by the time I got there, but it would be worth it -- if my investments keep up their track record, I think a jet is the way to go! If they're really as good as she says, maybe I just pick up the talented chef and have her recreate the magic meal on the jet.
General Dynamics (NYSE:GD), maker of the Gulfstream private jet, is starting to look like a value. The current G150 jet will set me back about $14,500,000 for a 2008, but that's before any haggling. I'm sure I could get one for $14 million. I could also rent or lease an older G3 for between $3,500 and $5,000 a day, although I understand from the chef herself that it would be worth it.
If you are interested in the stock, it is much cheaper than the jets, closing yesterday at $88.18 a share. Private jets are just one of the many expanding enterprises at General Dynamics, and I am certain that with the war in Iraq, the government is going to have to replace all of its "toys" whether the troops come home sooner or later.
At 19, the P/E is higher than the S&P average, and at 1.3% the dividend is slightly lower than the average. The price-to-earnings-to-growth (PEG) ratio is reasonable at 1.3 but not great. I do like the 1.26 price-to-sales ratio. Still, my verdict is, wait. This is a watch-list stock near its 52-week high of $90.95. So be patient, and maybe you will be rewarded.
As for the French toast, I think I will have to wait for that as well -- tempting as the offer was. Maybe next time I will get more notice.
To find potential opportunities and verify my track record, read Chasing Value or Serious Money.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.
Why do we have a weak dollar?
Holiday hiring slow for retailers
Closing Bell: What sell-off? (AIG, ABK, EPR, MBI, JAVA, ORCL, ERTS)
