Risks decline or volatility in economy, where are most of sales generated from, amount of insider influence

Industrials

Transportation US Department of Labor high growth industry, investments, additional resources

Macro Variables- GDP Aerospace and Defense World GDP , Construction US GDP Interest Rates Building and Construction Corporate profits- tied to GDP Foreign Exchange Rates -Industrial production -ISM Manufacturing Index Industrials Data -Steel Prices Months, Price, Index ( Inflation adjusted) Steel Prices have gone up ( impacts COGS) PPI- Finished goods less food and energy source labor department Oil Prices Oil prices have gone down in past year, average monthly chart , Defense spending budgets Cass Freight Index- indicator for industrial shipment activity -Yardeni Industrials Handbook Transportation Railroads Coal, Weekly Us Coal Production Chemicals Air freight Higher value per unit weight, more time sensitive than trucking

Government Policy Highway and mass transit, accelerated depreciation rules

Valuation Metrics Leverage Ratios ( D/E), Degree of Operating Leverage higher leverage affects EBIt. = Degree of Operating Leverage = % change in Ebit / % change in Sales a ratio of 1 implies that all of the companys costs are fixed, EBIT Vs. EBITDA- D&A is big in industrials and allows for an accurate comparison against other companies -Potential IssuesCore Business Performance- Margins, Ratios Bloomberg Chart- Stock Price, and Earnings Surprises News Items DCF Sensitivity Analysis Growth, COGS, SGA, P/E = PV Analyst Recommendations