Aerospace Is Looking Up - TheStreet

An upturn in aerospace? This morning,

BE Aerospace

(BEAV)

-- in which we have a small position but at one time were one of the largest shareholders -- signaled that things had gotten better.

BE Aerospace makes seats for

Boeing

(BA) - Get Report

and

Airbus

. When Boeing gets a cold, these guys get DeathRay 2000! They have been an incredibly accurate predictor of turns in the cycle.

And the cycle is a long one. Because of BE Aerospace comments we are seeing stocks like

Honeywell

(HON) - Get Report

and

United Technologies

jumping. We are long Boeing and playing the cycle that way. (We also have a small position in BE Aerospace and are trying to buy more. )

Why bother to care? Because we are big believers that aerospace may be less sensitive to the cyclical downturn because of a turn in Asia and good orders from Europe. And we think that as the economy slows, a Bush win increases, and a Bush win is a win for aerospace defense. These aerospace stocks aren't the types of stocks that take dotcom-like projectile moves. But they don't take them on the downside either. And they have all been crushed as this aerospace downturn has been brutal beyond belief. Just brutal. So the upside is much greater than the downside for all of the companies that sell to Boeing.

That's an inflection point worth noting.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long BE Aerospace and Boeing. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.