Zacks Initiates Trans-Pacific Aerospace Company (TPAC) at Outperform - Analyst Blog

Ken Nagy, CFA

Trans-Pacific Aerospace Company (TPAC) intends to monetize its proprietary technology.  TPAC and its joint venture partners intend to manufacture aerospace quality standard spherical bearings, rod ends and bushings (bearings) in China. Growth in China is two-fold: First the number of planes in China is expected to jump from 1,256 today to 4,330 over the next 20 years.  With 3,000 spherical bearings on each plane the market is substantial. Second the offsets or obligations that original equipment manufacturers (OEMs) such as Boeing and Airbus owe China are approximately $16 billion. There are currently no manufacturers of spherical bearings in China.  We see value in the shares.

Trans Pacific Aerospace should achieve its goals and outperform the market based on the following factors.

• The number of planes in China is expected to jump from 1,256 today to 4,330 over the next 20 years. 

• With 3,000 spherical bearings on each plane, the market is substantial.

• Offsets or obligations that original equipment manufacturers (OEMs) such as Boeing and Airbus owe China are approximately $16 billion.

• There are currently no manufacturers of spherical bearings in China. 

We feel the stock will outperform as TPAC hits it's testing and performance goals and enjoys a monopolistic hold in a growth industry.  We feel the shares will outperform and value the shares at $0.50.

For a copy of the full research report, please email scr@zacks.com with the ticker TPAC as the title