Erickson Air-Crane Could Be In For Rocky Ride

Founded in 1971, Erickson Air-Crane Inc (NASDAQ:EAC) is a world leader in the manufacture and operation of the S-64 Aircrane, one of the most versatile and powerful heavy-lift helicopters in the world. This gives Erickson a solid, leading position within the heavy-lift aviation industry—an industry that has high barriers to entry and very few competitors.

Moreover, the company is currently trading at a TTM P/E of 8.4 and a P/B ratio of 0.8, so Erickson looks to offer prospective value.

However, while the company looks to offer value, a closer inspection of its recent acquisitions,...