"Defense companies are in a growth market of the highest order," says Gregg Early in Personal Finance. But rather than buy industry giants, he suggest looking at lower-tier companies that are "either primed for the big leagues or will be acquired by a first- or second-tier company for a big premium in coming years."

One such play is Harris Corp. (NYSE: HRS), which Early notes represents the globalization of the defense industry. According to the advisor, "Special forces in Afghanistan, army units in Iraq and astronauts rely on Harris equipment."

Now, he says, Harris is making a move into Eastern Europe. He explains, "Because these nations are small and need to be unified on a communications level, the company will have myriad contracts with new nations for years to come. Harris Corp is a buy below 56."

Also a global play, the advisor looks to Israel-based Elbit Systems (NASDAQ: ESLT). He notes, "It's difficult to overstate the breadth of the company's client list. From India to the US to Saudi Arabia, everyone has a contract with this diversified defense conglomerate."

Continue reading Triple play in high tech defense stocks

Triple play in high tech defense stocks originally appeared on BloggingStocks on Mon, 30 Jul 2007 12:30:00 EST. Please see our terms for use of feeds.