investingfromtheright

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

August 31, 2007

September 1, 2007: Aero defense notes and a etf purchase



Picture: When the military blimp built by Goodrich and Goodyear was King...in Akron, Ohio. Click to enlarge.


Today I purchased two ETFs, the Vanguard Whitehall High Dividend Yield Fund at $40.20 (VYM) and the Claymore Global Brokers and Asset Managers Fund at $24.99 (EXB). I believe these are good plays on several fronts: yield, pin action with lots of assets being bought and sold in world markets and the stocks included in the funds (see for yourself).

In Aero Defense and commercial aviation:

President Bush will seek another %50b in funds for Iraq next month.
Democrats, invested in defeat, will attempt to block the request by trying to negate General Petraeus' presentation to Congress on the war. Field Marshall Harry Reid and El Presidente of Botox Nancy Pelosi attempt a coup.

As predicted, Boeing won NASA's Ares I upper stage to the tune of $525m for starters.

India is seeking bids fir 126 jet fighters from several competitors. My view is that Russia will have the inside track with its MIG 35 coupled with giveaway pricing.

DRS won another Navy contract for $250m providing enhanced satellite-based communications.

The Army is reviewing 18,000 contracts worth $3b for Iraq.

Norwegian Air ordered 42 Boeing 737s, worth $3.1b

Xiamen Airlines ordered 25 Boeing 737s worth $1.9b.

Thomas Enders has assumed the unenviable position as the new CEO of Airbus. Reportedly, Enders took the job after Jay Leno and Toots the Clown turned the job down.

I like the aero defense sector as a whole, especially:

BE Aerospace (BEAV)
Boeing (BA)
CACI International (CAI)
Ceradyne (CRDN)
DRS Tech (DRS)
EDO Corp (EDO)
Enbraer (ERJ)
Esterline Tech (ESL)
Fluor (FLR)
General Dynamics (GD)
General Electric (GE) - for several reasons
Goodrich (GR) - still my favorite
KBR Inc. (KBR)
L-1 Identity Solutions (ID) -- great poential
Precision Castparts (PCP)
Spirit Aerosystems (SPR) - up and coming
Textron (TXT)

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