It's no secret that one of my favorite value stocks has been Brazil's commercial planebuilder, Embraer (ERJ).

The company has developed a line of executive jets based on one of its regional jet platforms. It supplies defense aircraft for the Brazilian Air Force and has sold to armed forces in Europe, Asia and Latin-America.

China's increasing wealth and government infrastructure spending will result in continued growth in domestic passenger traffic in the country. This is a huge market opportunity. Recently Boeing forecast that it expects China's fleet size to triple over the next 20 years, requiring 5,000 new commercial aircraft worth $600 billion during the period.

And the orders are coming in already. Embraer just received an order for 13 Legacy 650 executive jets to a Chinese leasing company. The first delivery is to be made by the end of this year and the remaining within the next five years.

This month, Embraer also sold six planes to GE Capital Aviation Services in a deal valued at over $257 million with an option for six more planes that would bring the deal size to $500 million.

Recently I talked with management about the outlook for the company. Click here for the video.

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Happy trading this week!

Rudy