investingfromtheright

I am retired and take educated guesses on all things financial.

January 21, 2007

January 22, 2007: Bombs away: Aero Defense



This is a brand new generation of Cruise Missile. Called the AGM-129 and readied at Eglin AFB near Destin, FL.,it is designed to evade all known air and ground-based defenses to strike even the most hardened of targets.Armament and depth of target penetration are classified. Iran and North Korea? Checkmate.

Reports indicate that DOD will up Iraq Surge budget from 100B to 105.6B.

LMT has been ordered to stop work on the LCS program.

MRAP contracts to be approved in April call for approx, 4060 vehicles between July and December of this year.

GE has agreed to acquire Smiths Aerospace. Importantly, GE has entered into a very large homeland security joint venture with Smiths. This is a big deal.

Wow! Airbus has announced it expects to deliver negative EBIT for 2006. Who would have thought.

UPS may cancel 10 A380F Airbus orders. This may kill the Airbus hope to use the A380 as a freighter.

ERJ delivered 37 aircraft in 4th Quarter, 2006. Short by five aircraft. I still like this stock.

Fed up with poor service, long lines and poor flights, Biz jet charter air activity was up 20% year to year.

I do not recommend any fund in the Aero Defense sector at this time. Individual stock selection is important.

BEAV BE Aerospace
PCP Precision Castparts
TDG TransDigm Group
BA Boeing
ESL Esterline Tech
DYN DynCorp
GD General Dynamics
GR Goodrich
LLL L-3 Communications
NOC Northrup Grumman

I am looking into several microcap stocks in this realm. I will make a comment on these if and when I see a good value.

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