March 26, 2007:Real estate and Aero defense information

Your blogger will be spending time the next two weeks researching and traveling representing myself and other investors with the intention to purchase distressed real estate.California will be first on the agenda. Leaving Friday of this week.

I (and others who know the game) feel that at this stage, real estate has been beaten down to close to bottom and excellent deals are to be had. It is our intent to pick up batches of properties at approximately 20 cents per 2007 appraised value. Some folks (i.e., banks) just HAVE to sell.

Real estate now has a much better short and intermediate potential than stocks and investment grade bonds. As financial planners have little or no expertise in real estate, you can book that they will continue on with the sub-prime talk - missing opportunities left and right that a good Realtor/Broker/Bank foreclosure department could provide clients.

Areo-Defense:

>Senate approved $98B in armed forces supplementals, $2B more than requested.

>Armored vehicles were fully funded.

>The CSAR-X decision has been postponed by the USAF pending further clarification.

>GAO wants Army go-decision on the FCS by 2009. Presently running above planned $164B estimate.

>LLL won the linguist contract through December 2007.

>AH received $103M contract for up-armored HMMWW.

>Japan is considering buying military jets from Boeing (BA). Quantity to be announced.

>BA affirmed 787 development schedule. Rollout on July 8th.

>BEAV priced 10.5 million share offering at $32.

>PCP announced suprise 15% revenue growth.

>Dubai's purchase of Landmark Aviation and Aero-Holding will likely get approval from the investigative congressional panel. This may lead to other takeovers of non-defense specific companies by third world companies of interest.The 1990s all over again!


Stock recommendations are the same as last week, except:

Precision Castparts (PCP) is strongly recommended for consideration based upon new numbers and cost containment.