September 15, 2006: Military logic...yes

Military intelligence:an oxymoron.Or so some think. I believe that investors who do not pay attention to what the military is doing through the public record of the official acquisition departments of our military are making a moronic mistake.

Believe it or not, many of the best and brightest do indeed reside in the military. Acquisitions forecast lower oil months ago (when some genius analysts were predicting $100.oil). Acquisitions forecast stable prices months ago for equipment and supplies (so much for inflation). Acquisitions provided a roadmap for our nation's international intentions months ago. Acquisitions provided the knowledge of the successfull anti-missile program months ago (so much for North Korea driving up oil with a wayward nuke on Los Angeles). Acquisitions provided knowledge of commodity prices months ago through bidded contracts with suppliers.

I am not claiming that individual investors pitch a tent in front of the Pentagon hoping that wayward classified requisitions fall from the windows. I am recommending that the military, through public records to be found with due diligence, is an invaluable resource that is overlooked. And the companies that do business with the military publish most contracts, especially when bids are awarded. Follow the paper trail. If you did, you likely could have discovered some outstanding investment ideas. And you would have also discovered that the military is not about $500.00 toilet seats, but dedicated professionals nailing down costs through extensive national and international intelligence that you don't get watching CNBC.

In a future post,I will name a few defense agencies and companies that have been spot on with predictions, acquisition pricing and execution of contracts over the past several years. We are not giving away secrets here.The information is public.The confidence to trust this ignored research tool will allow the investor
to have an edge. And that is what we all strive to have.

The above picture was taken in the Persian Gulf and shows a beautiful example of the assets the United States Coast Guard deployed there.The middle ship is a relatively new "black hull" multipurpose ship that can do everything from 10,000 lb. bouy lifting to oil spill containment to coastal interdiction. All three ships have the lastest in classified equipment to do their missions successfully. These and other craft of the Coast Guard protect our shores and enforce immigration and drug interdiction. We owe the Coast Guard a great ovation for their superb service locally, nationally and internationally.Semper Peratus.