Taking Flight

Aerospace helped Alfred Jackson's portfolio take off

It looks like former NFL wide receiver Alfred Jackson, now a principal with Houston-based Davis Hamilton Jackson & Associates L.P., has transferred his deft touch to the investing arena. The portfolio that Jackson assembled has climbed 29.5%, well outpacing the 2.7% gain of the S&P 500.

The MVP of the picks: shares of Precision Castparts Corp., a maker of metal component and products, more than doubled in value, climbing nearly 116% to $147.34. The parts supplier has reeled off six consecutive quarters of strong sales growth, thanks to strong demand from aircraft manufacturers that like its fuel-efficient and heat-resistant components.

Another stock benefiting from the aerospace industry is United Technologies Corp., a provider of high-tech products for aircraft and buildings. A strong third quarter, in which five of the company’s six business units saw double-digit profit growth, helped lead shares to a 17.3% return.

PepsiCo Inc., posted a 25.9% gain. Management has said that growing overseas revenue from sales of the company’s drinks and snacks have helped offset the rising price of materials.

Cognizant Technology Solutions Corp., down 18.4%, was the lone decliner. Although the IT consulting company is based in New Jersey, two-thirds of its employees are based in India. There, the rising value of the rupee against the dollar has made paying those workers more costly, and that has cut into profit margins.

Alfred Jackson

Company (Ticker) Price 11/10/06 Price 11/30/07 Total Return*
Cognizant Tech. Solutions (CTSH) $38.12 $31.10 -18.4%
Ecolab Inc. (ECL) 44.82 47.78 6.6
PepsiCo Inc. (PEP) 60.98 76.80 25.9
Precision Castparts Corp. (PCP) 68.24 147.31 115.9
United Technologies Corp. (UTX) 63.74 74.77 17.3
Total Portfolio 29.5
S&P 500 1,380.00 1,481.14 7.3

Current Value of
$5,000 Investment: $6,475.59
*reflects stock splits and dividends source: yahoo! finance

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