BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Chasing Value: Scoping Out Defense Contractors -- Part 1]]>http://www.bloggingstocks.com/2010/10/11/chasing-value-scoping-out-defense-contractors-part-1/http://www.bloggingstocks.com/2010/10/11/chasing-value-scoping-out-defense-contractors-part-1/http://www.bloggingstocks.com/2010/10/11/chasing-value-scoping-out-defense-contractors-part-1/#commentsFiled under: , , , , , ,

The defense sector is down, but don't count it out. We give lip service to the likelihood of defense being a target of budget hawks in Congress, but truth be told, the same fiscally conservative members are often the biggest supporters of defense.

Equally important is that unlike many other industries, this is one tech sector that keeps most of its jobs at home and well-distributed through the country. This, too, preserves defense spending.

The major players in the industry after 20 years of consolidation are General Dynamics Corp (GD), Lockheed Martin (LMT), Boeing Co (BA), Northrop, Grumman (NOC), and Raytheon Company (RTN). In addition there are hundreds more making specialized parts in support of the majors and more still supplying basic elements like tires, wiring, computer processors, steel, aluminum, specialty glass, and ammunition. Then there are suppliers of manpower and smaller manufacturers producing unmanned aircraft drones and robots.

Continue reading Chasing Value: Scoping Out Defense Contractors -- Part 1

Chasing Value: Scoping Out Defense Contractors -- Part 1 originally appeared on BloggingStocks on Mon, 11 Oct 2010 14:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BABoeingChasingValuedefense contractorsdefense stocksfeaturedGDGeneral DynamicsLMTlockheed martinNOCNorthrop GrummanRaytheon CompanyRTNvalue investingValue StocksMon, 11 Oct 2010 14:30:00 EST<![CDATA[Lockheed Martin Trading Higher on Q1 Numbers]]>http://www.bloggingstocks.com/2010/04/21/lockheed-martin-trading-higher-on-q1-numbers/http://www.bloggingstocks.com/2010/04/21/lockheed-martin-trading-higher-on-q1-numbers/http://www.bloggingstocks.com/2010/04/21/lockheed-martin-trading-higher-on-q1-numbers/#commentsFiled under: , , ,

Military contractor Lockheed Martin (LMT), whose colleagues include Boeing (BA) and Raytheon (RTN), is up today on first-quarter data. At the time of this writing, shares were higher by 1.3%.

Net income came in at $1.45 per share on a reported basis, a decrease of 23 cents compared to the year-ago period. However, there was a charge of 25 cents for the elimination of a tax deduction related to Medicare included in the current per-share profit number, so that should be taken into account. Wall Street was looking for $1.34 per share, so no matter what, management beat expectations.

Continue reading Lockheed Martin Trading Higher on Q1 Numbers

Lockheed Martin Trading Higher on Q1 Numbers originally appeared on BloggingStocks on Wed, 21 Apr 2010 15:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BAboeingdefense contractorsinthenewsLMTlockheed martinraytheonRTNWed, 21 Apr 2010 15:00:00 EST<![CDATA[Lockheed fighter jet killing the competition]]>http://www.bloggingstocks.com/2009/06/17/lockheed-fighter-jet-killing-the-competition/http://www.bloggingstocks.com/2009/06/17/lockheed-fighter-jet-killing-the-competition/http://www.bloggingstocks.com/2009/06/17/lockheed-fighter-jet-killing-the-competition/#commentsFiled under: ,

With international sales of its new F-35 fighter jet coming, Lockheed (NYSE: LMT) is maneuvering Boeing Co. (NYSE: BA) and Saab AB out of the hostile skies.

The program manager of this particular jet believes that there will be fewer prime manufacturers in the future. This won't impact lower-level suppliers substantially, though, as they will have an ample role with the F-35 and continue to service existing aircraft from other manufacturers. These suppliers contributed more than 70% of the work to the F-35.

Continue reading Lockheed fighter jet killing the competition

Lockheed fighter jet killing the competition originally appeared on BloggingStocks on Wed, 17 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>baBoeingdefense contractorsfighter jetfighter planesinthenewslmtLockheed MartinWed, 17 Jun 2009 09:00:00 EST<![CDATA[Is this the best time to commit new money to stocks?]]>http://www.bloggingstocks.com/2008/12/03/is-this-the-best-time-to-commit-new-money-to-stocks/http://www.bloggingstocks.com/2008/12/03/is-this-the-best-time-to-commit-new-money-to-stocks/http://www.bloggingstocks.com/2008/12/03/is-this-the-best-time-to-commit-new-money-to-stocks/#commentsFiled under: , , ,

What's one reason for not jumping back in the market at this juncture?

Well, one could certainly cite end-of-the-year tax loss selling, which typically weighs on the market. Or the battle for Dow 8,000 between institutional bulls and bears. Or the fact that the Dow's path of least resistance, from a technical standpoint, remains down. (That's a major reason why the Dow drops so quickly: all that's required is a hedge fund manager to sneeze and the Dow drops 300 points, or so it seems.)

All of the above are valid reasons to remain on the sidelines.

Is Washington planning big changes?

But perhaps the best reason to not deploy new capital is the new era itself. The United States is preparing for a new presidential administration and one gets the sense that there could be a series of seismic shifts up ahead -- shifts that will affect money, markets, investing, and business trends.

It's true that after the U.S. government's allocation, via loans, loan guarantees, or investments, of about $8.2 trillion for the financial system, it's hard to picture shifts up ahead that could be as landscape-altering as those undertaken in the past year. But that could very well be the case nevertheless.

Those hoping for small change are likely to be disappointed. On January 20, President-elect Obama becomes President Obama and he is big change. U.S. Senator and now Secretary of State-designate Hillary Clinton, D-New York, was small change, and we saw how the electorate responded to her candidacy. Voters were so adamant for economic change (and other changes) after the United States' decade of descent that they not only blamed the Republican Party, they rejected anyone with even a hint of being a part of the economic policy mistakes, including Clinton.

Continue reading Is this the best time to commit new money to stocks?

Is this the best time to commit new money to stocks? originally appeared on BloggingStocks on Wed, 03 Dec 2008 12:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Barack ObamaCongressdefense contractorsfeaturedfederal budgetfiscal stimulushealth carepharmaceutical sectorWed, 03 Dec 2008 12:45:00 EST<![CDATA[Democrats win, and owners of defense stocks begin to tremble ]]>http://www.bloggingstocks.com/2008/11/05/obama-wins-and-owners-of-defense-stocks-begin-to-tremble/http://www.bloggingstocks.com/2008/11/05/obama-wins-and-owners-of-defense-stocks-begin-to-tremble/http://www.bloggingstocks.com/2008/11/05/obama-wins-and-owners-of-defense-stocks-begin-to-tremble/#commentsFiled under: , , ,

That rumbling you heard this morning was the mad, frantic shuffling of papers and budget proposals inside the offices of defense contractors around the Washington Beltway, as they prepare to justify their appropriations amid a political shift in the nation's capital.

The Democrats, led by U.S. President-elect Barack Obama, are taking over the town. And while the security needs of the post-September 11 era and two wars mean major U.S. defense spending cuts are unlikely, changes in priorities and the demands of the financial crisis could create "a dramatically different defense spending landscape" for defense contractors like Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC)," says economist Peter Dawson.

More support for troops on ground?

"What we may see from President-elect Obama is a shift toward increased U.S. Army troop strength and the basic armor and weapon systems that support them, to take stress off our forces in Iraq and Afghanistan, and to improve results in the wars, and less emphasis on costly, high-tech weapon systems," Dawson said. "If that's the case, an Obama Administration could seek to delay production of the Navy's DDG-1000 Zumwalt class destroyer, additional purchases of the new F-22 fighter jets, and other programs."

The DDG-1000 destroyer is jointly built by Northrop Grumman and General Dynamics (NYSE: GD). The F-22 is built by Lockheed Martin. Northrop's shares rose 44 cents to $48.50, Lockheed's gained 62 cents to $86.53, and General Dynamics fell $1.30 to $62.47 in mid-day Wednesday trading.

Continue reading Democrats win, and owners of defense stocks begin to tremble

Democrats win, and owners of defense stocks begin to tremble originally appeared on BloggingStocks on Wed, 05 Nov 2008 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>110508Barack Obamabudget deficitCongressdefense contractorsdefense spendingdefense stocksDefenseContractorsDemocratsfeaturedObamaObama AdministrationPentagonRepublicansU.S. Department of DefenseWed, 05 Nov 2008 13:30:00 EST<![CDATA[Time may be on Boeing's side after Pentagon delays tanker contest]]>http://www.bloggingstocks.com/2008/09/10/time-may-be-on-boeings-side-after-pentagon-delays-tanker-contes/http://www.bloggingstocks.com/2008/09/10/time-may-be-on-boeings-side-after-pentagon-delays-tanker-contes/http://www.bloggingstocks.com/2008/09/10/time-may-be-on-boeings-side-after-pentagon-delays-tanker-contes/#commentsFiled under: , ,

In business, as in international relations, there are battles you fight and battles you don't fight.

It looks like Boeing's decision earlier this year to protest the U.S. Department of Defense's award of an aerial refueling tanker contract constituted a savvy corporate tactic. Government auditors first ordered a rerun of the competition, and then today U.S. Secretary of Defense Robert Gates delayed the $35 billion award contest, saying there isn't enough time to complete the contest fairly, by the end of the Bush Administration, the Pentagon announced.

"Over the past seven years the process has become enormously complex and emotional -- in no small part because of mistakes and missteps along the way by the Department of Defense," Secretary Gates said in a statement. "It is my judgment that in the time remaining to us, we can no longer complete a competition that would be viewed as fair and objective in this highly charged environment."

Gates added that the 'cooling off' period will allow the next administration to objectively review the military requirements and craft a new acquisition strategy for the refueling tanker.

Continue reading Time may be on Boeing's side after Pentagon delays tanker contest

Time may be on Boeing's side after Pentagon delays tanker contest originally appeared on BloggingStocks on Wed, 10 Sep 2008 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>baboeingdefense contractorsdefense spendingEADSinthenewsKC-Xnocnorthrop grummanNorthropGrummanPentagonrefueling tankerU.S. Department of DefenseWed, 10 Sep 2008 18:00:00 EST<![CDATA[Olin Corp.: A decidedly low-profile play]]>http://www.bloggingstocks.com/2008/06/24/olin-corp-a-decidedly-low-profile-play/http://www.bloggingstocks.com/2008/06/24/olin-corp-a-decidedly-low-profile-play/http://www.bloggingstocks.com/2008/06/24/olin-corp-a-decidedly-low-profile-play/#commentsFiled under:

The savvy investor knows that, in addition to the known performers, one has to locate those 'off the radar' stocks -- potential gems and overlooked performers that don't receive much publicity. And with the aforementioned in mind, Olin Corp. is worth a review.

Olin Corp. (NYSE: OLN) is a diversified producer of chlor-alkali chemicals and ammunition.

Analysts like Olin's chlor-alkali business (75% of 2008 revenue), including products caustic soda and chlorine, among others. An ammunition business rounds-out OLN's diverse industrial plate. Look for the ammunition business to continue to benefit from strong U.S. Government orders, in the immediate years ahead. The Reuters F2008/F2009 EPS consensus estimates for OLN are $1.97/$2.03.

The risks? The commodity chemicals segment is cyclical -- some products are used in pulp and paper processing and to keep swimming pool water clean, for example -- so analysts will look for signs of a slower-economy-induced dip in orders in Q1/Q2 2008. Analysts are also keeping an eye on Olin's skilled labor costs.

Continue reading Olin Corp.: A decidedly low-profile play

Olin Corp.: A decidedly low-profile play originally appeared on BloggingStocks on Tue, 24 Jun 2008 16:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ammunitionchemicalsdefense contractorsOlin Corp.OLNTue, 24 Jun 2008 16:15:00 EST<![CDATA[Boeing says tanker program at risk if it loses appeal of USAF decision]]>http://www.bloggingstocks.com/2008/06/18/boeing-says-tanker-program-at-risk-if-it-loses-appeal-of-usaf-de/http://www.bloggingstocks.com/2008/06/18/boeing-says-tanker-program-at-risk-if-it-loses-appeal-of-usaf-de/http://www.bloggingstocks.com/2008/06/18/boeing-says-tanker-program-at-risk-if-it-loses-appeal-of-usaf-de/#commentsFiled under: , ,

Boeing may abandon plans to sell its aerial refueling tanker internationally if it loses its protest of a U.S. Air Force decision to buy $40 billion worth of tankers from a competitor, The Wall Street Journal reported Wednesday [subscription].

Boeing's Mark McGraw, the executive in charge of the program, told The Journal that Boeing had counted on the Pentagon to provide enough volume to make an international tanker business viable.

In February, Northrop Grumman (NYSE: NOC) and partner European Aeronautic, Defence & Space (EADS), parent of Airbus, beat out Boeing, the Air Force's only supplier of the aircraft for half a century; the Air Force recently announced that it continues to support that decision. Boeing protested the award to the Government Accountability Office, which must make its recommendation to the Pentagon by Thursday.

Boeing's (NYSE: BA) shares were virtually unchanged on the news in Wednesday mid-day trading, gaining eight cents to $74.43. Northrop Grumman rose $1.03 to $72.09 and EADS fell 46 euro cents to 13.57 euros on the Paris Exchange.

Continue reading Boeing says tanker program at risk if it loses appeal of USAF decision

Boeing says tanker program at risk if it loses appeal of USAF decision originally appeared on BloggingStocks on Wed, 18 Jun 2008 14:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BABoeingdefense contractorsdefense spendinginthenewsNOCNorthrop GrummanPentagonU.S. Department of DefenseUnited States Air ForceWed, 18 Jun 2008 14:30:00 EST<![CDATA[United Technologies' services will be in demand awhile]]>http://www.bloggingstocks.com/2008/05/16/united-technologies-services-will-be-in-demand-awhile/http://www.bloggingstocks.com/2008/05/16/united-technologies-services-will-be-in-demand-awhile/http://www.bloggingstocks.com/2008/05/16/united-technologies-services-will-be-in-demand-awhile/#commentsFiled under: ,

Readers of this space know that selected defense contractors are my preferred plays, growing U.S. economy or not. (But let's hope it's a growing U.S. economy). And the reason for the defense contractor bullishness is obvious enough. The geopolitical climate can change, of course, but it looks like defense, national security and anti-terrorism efforts will remain at the top of the U.S.'s concerns, for the foreseeable future.

Further, when one can combine a defense contractor with an industrial play, including commercial aviation, the potential exists for superior return on equity. And with the above in mind, United Technologies is worth a review.

United Technologies (NYSE: UTX) is one of those handful of stocks in which you can buy 200 shares or 50 shares for your child's college fund, and then look back on it in 10 years and be very glad you did.

Here are some attributes: Leadership position in high-value-add sectors, substantial defense contracts, infrastructure/capital improvement businesses, technological leadership, diversification and operational balance, economies of scale, massive amounts of engineering talent, long history of steady earnings growth and dividend growth. The Reuters F2008/F2009 EPS consensus estimates for UTX are $4.88/$5.45.

Continue reading United Technologies' services will be in demand awhile

United Technologies' services will be in demand awhile originally appeared on BloggingStocks on Fri, 16 May 2008 12:12:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>air conditioningcommercial aviationdefense contractorsdefense sectorelevatorsemerging marketsescalatorshelicoptersjet enginesUnited TechnologiesUTXFri, 16 May 2008 12:12:00 EST<![CDATA[Look for Boeing's shares to rise with the 787 Dreamliner]]>http://www.bloggingstocks.com/2008/05/09/look-for-boeings-shares-to-rise-with-the-787-dreamliner/http://www.bloggingstocks.com/2008/05/09/look-for-boeings-shares-to-rise-with-the-787-dreamliner/http://www.bloggingstocks.com/2008/05/09/look-for-boeings-shares-to-rise-with-the-787-dreamliner/#commentsFiled under: ,

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Boeing is worth an evaluation.

The Boeing Company (NYSE: BA) is the world's largest aerospace company.

In general, analysts expect 3-5% revenue growth in FY 2008, and 7-10% in FY 2009 as Boeing's increased aircraft production to meet high order backlogs offsets production delays in the 787 Dreamliner.

Moreover, although not to give short-shrift to Boeing's Integrated Defense Systems division, now the world's second-largest military contractor, behind Lockheed Martin (NYSE: LMT), the major driver of BA's future value-added will continue to be its commercial aviation operation, led by the next-generation 787 Dreamliner.

Continue reading Look for Boeing's shares to rise with the 787 Dreamliner

Look for Boeing's shares to rise with the 787 Dreamliner originally appeared on BloggingStocks on Fri, 09 May 2008 16:54:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>747757787787 DreamlinerAirbusBABoeingcommercial aviationdefense contractorstravelFri, 09 May 2008 16:54:00 EST<![CDATA[L-3 Communications has a client with deep pockets]]>http://www.bloggingstocks.com/2008/05/06/l-3-communications-has-a-client-with-deep-pockets/http://www.bloggingstocks.com/2008/05/06/l-3-communications-has-a-client-with-deep-pockets/http://www.bloggingstocks.com/2008/05/06/l-3-communications-has-a-client-with-deep-pockets/#commentsFiled under:

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. But every once in while an exception is made, and with the above in mind, L-3 Communications (NYSE: LLL) is worth a review.

L-3 makes secure and specialized systems for satellite, avionics, and marine communications, with a healthy percentage of its business coming from the U.S. Government.

Analysts like LLL's diversified revenue streams: specialized products (34%) intelligence/communications (22%) government services (25%), and aircraft modernization and maintenance (19%).

Continue reading L-3 Communications has a client with deep pockets

L-3 Communications has a client with deep pockets originally appeared on BloggingStocks on Tue, 06 May 2008 18:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>communicationsdefense contractorsL-3 CommunicationsLLLtechnologyU.S. GovernmentTue, 06 May 2008 18:42:00 EST<![CDATA[Boeing, Textron secure $10.4 billion V-22 Osprey U.S. DOD contract]]>http://www.bloggingstocks.com/2008/03/31/boeing-textron-secure-10-4-billion-v-22-osprey-u-s-dod-contra/http://www.bloggingstocks.com/2008/03/31/boeing-textron-secure-10-4-billion-v-22-osprey-u-s-dod-contra/http://www.bloggingstocks.com/2008/03/31/boeing-textron-secure-10-4-billion-v-22-osprey-u-s-dod-contra/#commentsFiled under:

Bell Boeing has received a $10.4 billion U.S. Department of Defense contract for the V-22 Osprey that guarantees production of at least 167 more of the aircraft through 2012, Bell Boeing announced Monday.

Bell Boeing is a strategic alliance between Bell Helicopter, a unit of Textron (NYSE: TXT) company, and Boeing (NYSE: BA).

The five-year contract includes 26 CV-22 aircraft for the U.S. Air Force Special Operations Command and 141 MV-22 aircraft for the U.S. Marine Corps. The contract includes an option for additional aircraft.

Both Boeing and Textron moved higher on the news. Boeing shares gained 83 cents to $74.30 and Textron rose 47 cents to $55.07 in early Monday trading.

The V-22 is a tiltrotor aircraft with proprotors and engines installed in nacelles at the tips of both wings.

Analysis: The contract is good news on a number of fronts, the most obvious of which is additional work for Boeing and Textron. In the last six months Boeing shares have declined roughly $30 to about $74 on rollout delays for its next-generation 787 Dreamliner commercial aircraft, and the U.S. economic slowdown. The news is also a mild shot in the arm for the U.S. economy, which given the large number of industrial jobs lost to cheaper overseas manufacturing zones, can use all of the domestic industrial jobs it can get.

Boeing, Textron secure $10.4 billion V-22 Osprey U.S. DOD contract originally appeared on BloggingStocks on Mon, 31 Mar 2008 10:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BABoeingdefense contractorsinthenewsOspreyPentagonTextronTXTU.S. Department of DefenseMon, 31 Mar 2008 10:32:00 EST<![CDATA[Look for Alliant Techsystems to lift-off like its engines]]>http://www.bloggingstocks.com/2008/03/28/look-for-alliant-techsystems-to-lift-off-like-its-engines/http://www.bloggingstocks.com/2008/03/28/look-for-alliant-techsystems-to-lift-off-like-its-engines/http://www.bloggingstocks.com/2008/03/28/look-for-alliant-techsystems-to-lift-off-like-its-engines/#commentsFiled under:

With the U.S. economic landscape remaining uncertain, it's prudent to add a defensive stock or two to your portfolio, and with the aforementioned in mind Alliant Techsystems is worth an evaluation.

Alliant Techsystems (NYSE: ATK) is an ammunition supplier and rocket engine / motor manufacturer with substantial United States Government contracts.

Analysts like Alliant's strong fundamentals, solid U.S. Department of Defense orders for ammunition, equally impressive launch systems work from NASA, and sporting ammunition business.

Analysts also believe ATK is well-positioned to capture a portion of the U.S. DOD's work for next-generation weapon systems.

Meanwhile, margins should improve slightly in F2008 to 11%, and costs, while not low, are reasonable. The Reuters F2008/F2009 EPS consensus estimates for ATK are $6.39/$7.38.

The risks? An early withdrawal of U.S troops from Iraq would lower ATK's revenue for F2009-F2010. Analysts are also keeping an eye on the company's productivity per man hour.

The First Call mean rating for ATK is: Buy. [12 firms.] Mean 2008 target: $128. [high: $136, low: $120.]

Stock Analysis: Alliant Techsystems is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from ATK's shares. Sell / Stop Loss if you were to purchase shares in this company: $68.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Look for Alliant Techsystems to lift-off like its engines originally appeared on BloggingStocks on Fri, 28 Mar 2008 15:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Alliant TechsystemsammunitionATKdefense contractorsinthenewsNASAU.S. Department of DefenseFri, 28 Mar 2008 15:17:00 EST<![CDATA[Raytheon: A defense stock for a defensive play]]>http://www.bloggingstocks.com/2008/01/03/raytheon-a-defense-stock-for-a-defensive-play/http://www.bloggingstocks.com/2008/01/03/raytheon-a-defense-stock-for-a-defensive-play/http://www.bloggingstocks.com/2008/01/03/raytheon-a-defense-stock-for-a-defensive-play/#commentsFiled under: ,

The market's choppy / consolidating pattern continues, suggesting the need for a defensive play or two, and there are few defensive plays better than...a defensive stock, and in this category, Raytheon is worth an evaluation.

Raytheon (NYSE: RTN) is part of a defense contractor "hall of fame" that includes Northrop Grumman (NYSE: NOC), Lockheed Martin (NYSE: LMT), General Dynamics (NYSE: GD), United Technologies (NYSE: UTX), and Boeing (NYSE: BA).

Raytheon's defense offerings include reconnaissance, targeting, navigation systems, and missile systems (Patriot, Sidewinder, Tomahawk), and radar. The company also makes radios, air traffic control systems and satellite communications systems. About 80% of RTN's sales are to the U.S. government.

Overall, analysts see modest growth in defense spending. The current Democratic Party-led U.S Congress, if it retains its majority-party status after the November 2008 election, is likely to appropriate defense dollars more carefully. Nevertheless, present/future military threats argue that above-average demand for RTN's services will remain through at least the next presidential term, which ends in 2012. The Reuters F2007/F2008 EPS consensus estimates for RTN are $3.24/$3.81.

Continue reading Raytheon: A defense stock for a defensive play

Raytheon: A defense stock for a defensive play originally appeared on BloggingStocks on Thu, 03 Jan 2008 15:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>defense contractorsRaytheonRTNThu, 03 Jan 2008 15:44:00 EST<![CDATA[Olin Corp. has it covered, from bleach to bullets]]>http://www.bloggingstocks.com/2008/01/02/olin-corp-has-it-covered-from-bleach-to-bullets/http://www.bloggingstocks.com/2008/01/02/olin-corp-has-it-covered-from-bleach-to-bullets/http://www.bloggingstocks.com/2008/01/02/olin-corp-has-it-covered-from-bleach-to-bullets/#commentsFiled under:

Given the market's continued choppy / consolidating pattern, it makes sense to add a defensive stock or two, and one worth an evaluation is conglomerate Olin Corp.

Olin Corp. (NYSE: OLN) is a diversified producer of brass metal products, chlor-alkali chemicals, and ammunition.

Analysts like Olin's chlor-alkali business (21% of 2006 revenue), including products like caustic soda and chlorine, among others. An impressive brass operation (67% of 2006 revenue), and an ammunition business (12% of revenue) rounds-out OLN's diverse industrial plate. Look for the ammunition business to continue to benefit from strong military orders, in the immediate years ahead. The Reuters F2007/F2008 EPS consensus estimates for OLN are $1.50/$1.46.

The drawbacks? The commodity chemicals segment is cyclical -- some products are used in pulp/paper processing and to keep swimming pool water clean, for example -- so analysts will look for signs of a slower-economy-induced dip in orders in Q1/Q2 2008.

The First Call mean rating for OLN is: Buy. [7 firms.] Mean 2008 target: $24.00. [high: $27, low: $20.]

Stock Analysis: Olin Corp. is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from OLN's shares. Sell / Stop Loss if you were to purchase shares in this company: $13.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Olin Corp. has it covered, from bleach to bullets originally appeared on BloggingStocks on Wed, 02 Jan 2008 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>conglomeratesdefense contractorsindustrialsOlin Corp.OLNWed, 02 Jan 2008 16:40:00 EST<![CDATA[With General Dynamics, the goal is run silent, run deep]]>http://www.bloggingstocks.com/2007/12/18/with-general-dynamics-the-goal-is-run-silent-run-deep/http://www.bloggingstocks.com/2007/12/18/with-general-dynamics-the-goal-is-run-silent-run-deep/http://www.bloggingstocks.com/2007/12/18/with-general-dynamics-the-goal-is-run-silent-run-deep/#commentsFiled under: ,

General Dynamics (NYSE: GD) logo It' s not everyday that investors are presented with a growth opportunity, supplemented by more-than-modest downside protection, but that's the case with General Dynamics.

General Dynamics (NYSE: GD) is a diversified manufacturer of corporate jets and heavy vehicles, and is the second largest military shipbuilder -- specializing in nuclear-class submarines.

Along with consistent earnings and dividend growth, analysts like GD's platform diversity, with civilian work (Gulfstream corporate jets) complementing defense contract work (Trident submarines, armored vehicles). Analysts expect GD's revenue to increase about 10-13% in 2007, and 9-11% in 2008.

Moreover, GD's shares offer a measure of safety in that the submarine portion of the U.S. defense system is the force projection most likely to continue to be funded by Congress. Along with stealth fighters/bombers, submarines are the least-detectable form of military operations.

Long term, analysts generally see growth in GD's sales of business jets, land vehicles and munitions. Cost containment has been adequate. The Reuters F2007/F2008 EPS consensus estimates for GD are $5.07/$5.71.

The qualifiers? A reduction in U.S. Department of Defense appropriations would hurt GD's results, as would a failure to deliver existing work on time.

The First Call mean rating for GD is: Buy. [19 firms.] Mean 2008 target: $99.00. [high: $106, low: $94.]

Stock Analysis: General Dynamics is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from GD's shares. Sell / Stop Loss if you were to purchase shares in this company: $62.

With General Dynamics, the goal is run silent, run deep originally appeared on BloggingStocks on Tue, 18 Dec 2007 16:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>corporate jetsdefense contractorsDefenseSectorGDGeneral DynamicsPentagonsubmarinesU.S. Department of Defensewar stocksWarStocksTue, 18 Dec 2007 16:15:00 EST<![CDATA[Northrop Grumman is oceans ahead of the competition]]>http://www.bloggingstocks.com/2007/12/15/northrop-grumman-is-oceans-ahead-of-the-competition/http://www.bloggingstocks.com/2007/12/15/northrop-grumman-is-oceans-ahead-of-the-competition/http://www.bloggingstocks.com/2007/12/15/northrop-grumman-is-oceans-ahead-of-the-competition/#commentsFiled under: ,

Readers of this space know that the preference is for long-term plays with companies with demonstrated business models (10 years), in an established market, with an average total annual return on equity of 20% during that span. It also helps if the company has a secular tailwind and/or is one of only a few players in a sector.

On the last point, Northrop Grumman Corp. (NYSE: NOC) ranks very high, and it fares reasonably well in the other categories, too.

Northrop is the U.S.'s No. 3 defense contractor and the No. 1 shipbuilder in the world. Analysts like NOC's operational diversity, cash flow, and solid balance, but the company's standout dimensions, from an investment standpoint, are its electronics systems business (21% of revenue) and its ship building business (17% of revenue).

The electronics business is likely to remain a key player in radar/navigation/communications systems, moving forward, and the ships business is also in a preferred position: it's one of only two nuclear-power submarine makers in the U.S. and the only builder of U.S. aircraft carriers. Of course, no one can predict with any certainty the role aircraft carriers will play in defense operations -- the aircraft carrier's demise has been predicted for (seemingly) the past three decades -- but the sense here is that these ships will retain a role in the decades ahead. The company also builds the B-2 stealth bomber and has a 25% stake in the F-35 next-generation, joint-strike fighter.

Continue reading Northrop Grumman is oceans ahead of the competition

Northrop Grumman is oceans ahead of the competition originally appeared on BloggingStocks on Sat, 15 Dec 2007 13:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aircraft carriersB-2defense contractorsF-35NOCNorthop Grummanstealth bombersubmarinesThe PentagonU.S. Department of DefenseSat, 15 Dec 2007 13:10:00 EST<![CDATA[Despite U.S. economic slowdown, L-3 keeps rolling along]]>http://www.bloggingstocks.com/2007/12/06/despite-u-s-economic-slowdown-l-3-keeps-rolling-along/http://www.bloggingstocks.com/2007/12/06/despite-u-s-economic-slowdown-l-3-keeps-rolling-along/http://www.bloggingstocks.com/2007/12/06/despite-u-s-economic-slowdown-l-3-keeps-rolling-along/#commentsFiled under: ,

For L-3 Communications, the defense never rests. L-3 Communications Holdings, Inc. (NYSE: LLL) makes secure and specialized systems for satellite, avionics, and marine communications, with a healthy percentage of its business coming from the U.S. Government.

Analysts like LLL's diversified revenue stream: specialized products (34%), intelligence/communications (22%), government services (25%), and aircraft modernization and maintenance (19%).

Analysts expect 8%-9% organic revenue growth in 2007 and 7%-8% in 2008, including solid growth in government service and specialized products. The Reuters F2007/F2008 EPS consensus estimates for LLL are $5.95 to $6.51.

The risks? Analysts are keeping their eye on LLL's profit margins, high financial leverage, and ability to increase its low dividend. A substantial decline in U.S. government/defense spending would also hurt L-3's results.

The First Call mean rating for LLL is: Hold [15 firms]. Mean 2008 target: $116.20 [high: $129, low: $108].

Stock Analysis: L-3 Communications is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from LLL's shares. Sell/Stop Loss if you were to purchase shares in this company: $78.

Despite U.S. economic slowdown, L-3 keeps rolling along originally appeared on BloggingStocks on Thu, 06 Dec 2007 18:08:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CommunicationsSectordefense contractorsDefenseSectorL3 CommunicationsLLLtechnologyU.S. Department of DefenseU.S. GovernmentU.s.GovernmentThu, 06 Dec 2007 18:08:00 EST<![CDATA[Textron looks to the skies for earnings]]>http://www.bloggingstocks.com/2007/12/03/textron-looks-to-the-air-for-earnings/http://www.bloggingstocks.com/2007/12/03/textron-looks-to-the-air-for-earnings/http://www.bloggingstocks.com/2007/12/03/textron-looks-to-the-air-for-earnings/#commentsFiled under:

Cessna CJ-1 jetLook for Textron (NYSE: TXT) to continue to benefit from the global economy's tailwind.

Strong global economic growth should continue to generate solid demand of the company's Cessna jets and planes, which accounted for 51% of its profits. Further, analysts expect Textron's Bell division to perform well in 2008-2009 on strong commercial and military helicopter orders.

Textron's Industrial division should also post solid results, manufacturing everything from golf carts to lawn care machinery to auto parts. A decent, stable dividend adds to the mix. The Reuters F2007/F2008 EPS consensus estimates for TXT are $3.49/$4.09.

Continue reading Textron looks to the skies for earnings

Textron looks to the skies for earnings originally appeared on BloggingStocks on Mon, 03 Dec 2007 16:46:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aviationcorporate aircraftdefense contractorsdefense sectorglobal economyhelicoptersmanufacturingplanesTextronTXTU.S. economyMon, 03 Dec 2007 16:46:00 EST<![CDATA[Chasing Value: General Dynamics (GD) looking long and flying high!]]>http://www.bloggingstocks.com/2007/10/24/chasing-value-general-dynamics-gd-looking-long-and-flying-hig/http://www.bloggingstocks.com/2007/10/24/chasing-value-general-dynamics-gd-looking-long-and-flying-hig/http://www.bloggingstocks.com/2007/10/24/chasing-value-general-dynamics-gd-looking-long-and-flying-hig/#commentsFiled under: , , , , ,

General Dynamics (NYSE: GD) logoLast week when I suggested keepiing an eye on General Dynamics in Chasing Value: French Toast at 35,000 feet: Gulfstream - General Dynamics (GD) I had no idea we would receive an eyeful so soon. However, reports out this morning indicate I was on to something as the Wall Street Journal reported:

  • General Dynamics Corp. posted a 25% rise in third-quarter net income, citing robust government defense spending and booming sales of business jets. It also raised its full-year outlook. General Dynamics, which makes Abrams tanks and Stryker troop carriers, two mainstays of U.S. ground forces in Iraq, reported net income of $546 million, or $1.34 a share, compared with $438 million, or $1.08 a share, a year earlier.

General Dyamnics during the quarter improved cash-flow, cash reserves, contracted back-log of work, profit margins and gave a positive outlook to top it all off.

One of the things that makes GD so strong going forward is that the United states war machine keeps finding new frontiers every time you might think that calm is in order. And speaking of orders, investors shoud keep in mind that even if the war in Iraq stopped today and by the wave of a magic wand we could bring the troops and equipment home right now, replenishing our military hardware that has been destroyed, damaged, or just plain worn out will cost billions. General Dynamics and the other defense contractors should do very well even in peace time.

Continue reading Chasing Value: General Dynamics (GD) looking long and flying high!

Chasing Value: General Dynamics (GD) looking long and flying high! originally appeared on BloggingStocks on Wed, 24 Oct 2007 18:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chasing ValueChasingValuedefense contractorsDefenseContractorsGDGD earningsGdEarningsGeneral Dymanics (GD)GeneralDymanics(gd)Postive earningsPostiveEarningsrecession proofRecessionProofSheldon LiberSheldonLiberWed, 24 Oct 2007 18:30:00 EST