investingfromtheright

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

January 08, 2007

January 9, 2007: early Army contract information and an ETF

This may be of some interest.

Army contracts were inadvertently leaked today by the trade publication Inside The Army. While not a security problem, it does give the investor a heads up on who got what, and what for.

AH (Armor Holdings) received 1.2b for FMTVs and 1.0b for humvees (shared with AM General, a private firm). General Dynamics (GD) Stryker program will receive 858m and the M1 Abrams tank 778m. Army ammunition accounts are to receive 839m, which should benefit GD and ATK. ITT is the primary beneficiary of 1.5b for SINCGAR radio accounts. Oshkosh Truck (OSK) is to receive 1.2b for heavy trucks.

In my opinion, the biggest mover in this group will be OSK.


An ETF so "out" it may be "in":

As most ETF followers know, WisdomTree ETFs take a somewhat unique approach to finding value and performance, which is best explained by spokesperson Professor Jeremy Siegel at the web site, www.wisdomtree.com

One ETF I have begun to follow is the lightly traded WisdomTree International Industrial Sector ETF (DDI). I am not about to purchase this fund, but when the right moment arrives and international industrial companies are cheap, this ETF portfolio may do very well. With dividend quality being a noteworthy part of the WisdomTree stock selection process, the downside risk is mitigated.

The top holdings in this fund as of 01/07 include:

Siemens (4.74%)
Deutsche Post (3.32%)
Vinci (2.74%)
Compagnie De Saint-Gobain (2.55%)
Schneider Electric (2.53%)
Volvo (2.49%)
Phillips Electronics NV (2.42%)
Lafarge-Coppee (2.40%)
Wesfarmers (2.39%)
BAE Systems (2.08%)

There are a lot of stocks in this ETF, with only 5.7m in assets. It does not trade on Option. The expense ration is low at .58%.

I like their stock selection and weighting. At some point, it will be worthy of consideration. When? Well, probably when we least expect it, which is why I am reviewing it every few weeks.

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