investingfromtheright

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

June 03, 2007

June 4, 2007: Aero Defense and a few Alternative Energy stocks





Pictures: Oshkosh MRAP and an LED power chip


First up, some Aero Defense news:

NAVZ won a $623m/1200 vehicle MRAP order from the USMC.

RTN beat HRS for a $960m NMT program.

HRS announced the purchase of IT provider Multimax, Inc. for $400m and raised 08 guidance 28%.

CAI will acquire the Wexford Group Int.

DRS won a $139m contract for night vision devices.

Ryanair ordered 27 Boeing 737s for $1.9b. It will not be a 787 customer.

In a politically charged order, Qatar Airway's ordered 80 Airbus A350s worth $16b. It was implied that Boeing never had a chance to win this order although sources indicated it had a superior product and bid. Unfortunately, capitalism only works when the playing field is level.

India will order 6 C-130Js from LMT for $1b.


Here are some Alternative Energy stock ideas:

DOWA Holdings in Japan (5714), is a mining company that produces gallium as a by-product of refining zinc and through recycling, which accounts for 50-60% of its gallium production. Gallium prices have risen 90% since January, 2007. Experts believe that LED using gallium is a superior play on energy efficiency.

Rentech (RTK) is a US stock that is a pure play on coal-to-liquids technology (CTL). Although carbon emissions are a problem to be solved with this process, I believe that it will be overcome. This CTL technology is profitable when oil is over $50.00 the barrel.

E.ON in Germany us a great play on CO2 allocation arbitrage. Carbon trading will benefit E.ON over other conservative investment vehicles of that genre.

The UK stocks looking good now are British Energy (BGY.L), and National Grid (NG.L).

Solar is not gaining investment traction. The only decent play I saw was E-ton, a China company with little stock float.

In Japan, Toya Tenso (5310) is strong in the LED area.

An interesting company in the UK is Pennon (PNN.L) which extracts landfill gas for power generation, mostly as a result of the lucrative Renewable Obligation Certificates (ROCs).

Watch old chestnut Phillips Electric in Holland for new lighting systems that are up to 90% more efficient than current moderately energy efficient bulbs and other light sources.I owned Phillips back in the late 1980s and remember making a modest profit and then gladly dumping it because of its hundredth restructuring program that misfired. Could this 800 pound gorilla be getting it right now?

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