November 13, 2007: Aero defense picks and E*TRADE debacle

A few notes and picks in the aero defense sector:

Cathy Pacific ordered ten 747-8Fs and seven 777-300ERs worth $5.2b from Boeing.

LAN airlines ordered twenty six 787s worth $4.5b and will lease sis 787-9s from ILFC.

SPR will provide MRO service in Europe for 737NG and 777 nacelles.

Boeing (BA) completed the 747-8 Intercontinental configuration, which includes an 18 foot stretch from the 400 series and several interior improvements.

Goodrich (GR) is opening a large aircraft maintenance facility in Dubai.

The anti-missile program works, as reported here a while ago. Winners are RTN and LMT in this multi-billion dollar asset.

All F-15s are grounded. This ushers in the new wave of fighter aircraft. The F15s were as old as twenty-seven years.

As stated in an earlier post, the Department of the Army has added GD to the Warfighter FOCUS, which will now proceed.

Problems continue to plague the Coast Guard Deepwater program. Internally things are still in quite a mess, externally, the first ship slated to berth in California is too deep for the mooring.This vital program needs to be righted - and fast.

Stock picks:

BAE Systenms (BAE)
BE Aerospace (BEAV)
Boeing (BA)
CACI International (CAI)
DRS Technologies (DRS)
Dyncorp (DYN)
Embraer (ERJ)
Esterline Technologies (ESL)
General Dynamics (GD)
Goodrich (GR)
Honeywell (HON)
KBR Inc, (kbr)
L-1 Identity Solutions (ID)
L-3 Communications (LLL)
Lockheed Martrin (LMT)
Precision Castparts (PCP)
Raytheon (RTN)
Spirit Aerosystems (SPR)
Sran International (SRA)
Textron (TXT)


What is with E*TRADE?

Rumor has it, fueled by E*TRADE'S poor guidance and Citibank's downgrade hinting at bankruptcy has the stock at about $3.00/share, and investors using E*TRADE beginning to head to for exits if their stock balances are not protected by insurance.

E*TRADE had better sooth things fast or there will be a run from every investment instrument that it provides.