Homeland Defense Stocks Commentary from the SPADE Defense Index; Analysis of the White House’s Proposed FY-2011 Defense Budget
POINT ROBERTS, Wash., DELTA, B.C. –February 8, 2009 – www.HomelandDefenseStocks.com (HDS), a leading global investor and industry portal for the defense and security sector, within Investorideas.com, provides defense stocks investors with sector commentary from Scott Sacknoff, manager of the SPADE® Defense Index, regarding the FY-2011 Defense Budget.
Analysis of the White House’s Proposed FY-2011 Defense Budget
Read more from the Spade Defense Index:
http://www.homelanddefensestocks.com/Content_Partners/SI/Default.asp
For the defense sector, this past week was the Super Bowl, the Olympics, and the World Cup all rolled into one. Just as millions transfix on the TV screen watching the competitive sporting event of their choice, so too do defense analysts with the federal budget. The top level and big information has been released but the fine details will slowly emerge over the next few weeks as analysts, investors, and company officials determine the winners and losers and look for opportunities hidden in the budget. (FYI: The DoD budget is typically more than 26,000 pages). There is no more important day for the defense industry than the release of the budget. OK enough hyperbole and onto the analysis. The Budget A year ago the sector sold off from its highs (along with the overall market) driven by the fear of anticipated declines in the FY-2011 budget, therefore the details presented in the White House’s plans can be seen as nothing but a positive for the sector with the budget being strong and steady through the middle of the next decade. An analysis of the out-year budget shows a 13% dip between FY-2011 and FY-2012 before rising steadily over the following three years. This decline reflects reduced supplemental war spending as the U.S. pulls out of Iraq and the 18-month long efforts in Afghanistan and Pakistan wind down. Much of these resources goes toward personnel, supplies, and other items (ie. gasoline and energy needs). Many defense firms have stated that the war effort represents 5% or less of total revenues so the impact from reduced war spending is less than the raw number indicates. Meanwhile the core defense budgets grows about $15 billion annually through the middle of the decade. Overall, defense spending levels for FY-2015 are forecasted to be just 5% less than what is being spent during the peak of the war effort. The White House appears to have incorporated the necessary funds to rebuild and recapitalize the military while still funding future R&D and development efforts. It is nothing short of being one of the strongest non-war defense budget ever submitted from the White House. Combined with companies expanding their focus to compete and operate in non-defense sectors and the possibility of defense firms maintaining future growth becomes highly possible.
Some other items for your consideration: 1. General Science, Space, and Technology (non-defense) rises nearly 20% over the five years. 2. There is a minor dip in defense “direct physical” procurement rises from $117B to $147B before dipping to $141B in FY-11. RDT&E holds relative steady at $83B, $83B, and $82B from FY-09 to FY-11. 3. The classified budget (a $40+ billion effort) holds the post-growth levels seen in prior years. (There have been no statements to the contrary and rising expenditures on classified satellite systems and cybersecurity at the NSA and other agencies are not seen to decline). 4. Homeland Security is one of the departments whose budget was not frozen and will see $2 billion added, with nearly half of that amount going into advanced airport scanners. 5. NASA’s budget has been restructured an adds $6 billion over the five years while eliminating a major program creating opportunities for more companies to get a piece of future programs. 6. There is increased spending in what has been deemed “new priority areas”, ie. UAVs, helicopters, cyberwarfare, and activities that focus on agility. 7. Small and mid-size companies should see more opportunities. As such an increase from the 60 M&A transactions that Houlihan Lokey recorded for the sector in 2009 is likely to rise. (83% of the deals were less than $100 million in value, although valuations were higher with few high-growth companies coming to market.) 8. For large contractors, DoD’s shift from large, multi-billion dollar decade-long ‘exquisite weapons programs’ will lead to increased competition but is not necessarily a negative.
So although further analysis of the budget is still required, the initial appearance is that this budget should be viewed as a long-term positive for the sector.
About the SPADE Defense Index
More info and previous interviews:
http://www.homelanddefensestocks.com/Content_Partners/SI/Default.asp
The SPADE Defense Index® (AMEX: DXS) is a modified capitalization-weighted index comprised of publicly traded companies that benchmarks the performance of companies involved with the defense, homeland security, and space marketplace.
The SPADE Defense Index has been developed to be used by investors, financial professionals, trade analysts, and media as a benchmark for publicly traded stocks involved in these business sectors. The Index can be used as the basis for a range of financial instruments including options and other derivatives, exchange traded funds, and conventional mutual funds.
For more information: http://www.spadeindex.com/
Disclaimers: The information presented in this interview is for informational purposes and should not represent a solicitation or an offer to purchase an investment product. SPADE and the SPADE Defense Index are registered trademarks of the ISBC.
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Showing posts with label Defense Budget Winners and Losers – as it relates to cyber security. Show all posts
Showing posts with label Defense Budget Winners and Losers – as it relates to cyber security. Show all posts
Sunday, February 7, 2010
Wednesday, July 8, 2009
Re-release of Report on “Cyber Security: The Next Great Defense Opportunity” Following Recent Cyber Attacks on White House, DOD, NYSE, Washington Post
Homelanddefensestocks.com Re-release of Report on “Cyber Security: The Next Great Defense Opportunity” Following Recent Cyber Attacks on White House, DOD, NYSE, Washington Post
POINT ROBERTS, Wash., DELTA, B.C. –July 8, 2009 – www.HomelandDefenseStocks.com, a leading global investor and industry portal for the defense and security sector, within Investorideas.com, re- releases “Cyber Security: The Next Great Defense Opportunity ”, by Lisa Springer, CFA, as attention builds on the cyber security sector following recent cyber attacks on White House, DOD, NYSE, Washington Post and other leading sites.
Cyber Security: The Next Great Defense Opportunity
(Originally released June 16, 2009)
Lisa Springer CFA, Equity research analyst and financial writer
Defense Stocks: Lockheed Martin (NYSE:LMT), Raytheon (NYSE:RTN), Northrop Grumman (NYSE:NOC), AeroVironment (NASDAQ:AVAV), Optex Systems (OTCBB: OPXS), General Dynamics (NYSE:GD)
Many defense contractors look for huge growth opportunities in the market for cyber security. Bruce Tanner, the CFO of Lockheed Martin, recently identified cyber security as the quickest, near-term defense opportunity, with market growth well exceeding DoD growth rates. Tanner also believes cyber security margins will be comparable to DoD contracts. Lockheed has begun focusing M&A activity in the global security area and anticipates additional cyber security acquisitions this year.
Both Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT) are eager to gain share in this $7.4 billion market and have formed business units to tap cyber security spending. Boeing created its Cyber Solutions division last August and Lockheed launched its cyber-defense unit last October.
To address cyber security opportunities, Raytheon (NYSE:RTN) has acquired three network security providers, plans to hire 300 certified security engineers this year, and is partnering with University of Texas researchers on new cyber solutions. Northrop Grumman (NYSE:NOC) is also expanding cyber security capacity and was recently awarded a DoD contract for the National Cyber Range, part of a major government-wide effort to improve the nation’s defense against electronic attacks.
The need for a national cyber security plan is becoming increasingly evident as cyber attacks on U.S. agencies and civilian facilities cost the U.S. billions of dollars annually. The problem is getting worse; security breaches of government and private computer networks nearly doubled last year to 72,000. In response, the government is increasing spending for cyber security, which is forecast to rise by 44% to $10.7 billion in 2013. The Bush administration launched a cyber initiative last year funded at around $6 billion and the Obama administration is making cyber security an even higher priority.
President Obama earmarked $355 billion for cyber security in his 2010 fiscal budget and also announced plans to name a cyber security czar, who will have broad authority and likely serve on the National Security Council. Last month, the White House published a cyber security report with guidelines for strategies ranging from communications networks for emergency response teams to the government’s role in protecting infrastructure. The report followed a 60 day review of current government cyber security initiatives and was ordered by Obama shortly after he took office.
Many investors think increased government spending for cyber security will offset revenues lost by defense contractors due to military spending cuts. Share prices for many defense contractors are continuing to rise despite program cuts under the new defense budget. Since early April when the new budget was announced, Lockheed shares have climbed 18%, Boeing shares have jumped 39%, General Dynamic shares have gained 34% and Raytheon shares have improved 11%. This compared to a 13% rise in the S&P 500 during the same period.
In addition, earnings for this group remain strong; most large defense contractors recorded EPS gains and increased EPS guidance after the March 2009 quarter. Lockheed Martin raised full-year guidance by 10 cents to $7.15-47.35, Northrop Grumman increased guidance by 15 cents to $4.65-$4.90, and Raytheon boosted guidance by 10 cents to $4.55-4.70. Boeing was a notable exception; earnings for its defense business fell 18% year-over-year and Boeing cut full-year guidance by 35 cents to $4.70-$5.00.
Small defense contractors providing tools for existing military operations will benefit from $130 billion in funding for the Iraq and Afghanistan wars in the new defense budget. An $83.4 billion war-time supplement request has been submitted to Congress to cover Iraq/Afghanistan costs through the second half of 2009.
Shares of AeroVironment (NASDAQ:AVAV) have jumped 15% since the new defense budget was announced. This company manufactures unmanned military drones used in Afghanistan and Pakistan. In June, AeroVironment received orders for a third global observer aircraft, the sixth contract option exercised under a program cumulatively valued at $120 million.
Newly-public Optex Systems (OTCBB: OPXS) manufactures optical sighting systems for large Howitzer guns used to shell insurgent positions in Afghanistan. During the March quarter, Optex grew revenues nearly 20% and cut its net loss by half. Excluding non-cash intangible expense, the company would have recorded positive net income. Prior to the earnings release, Optex signed a new $7.5 million contract with the U.S. Army for laser-protected periscopes. The company’s shares began trading in early May and quickly climbed to $0.45 before retreating to the current $0.25 range.
General Dynamics (NYSE:GD) is capitalizing on contracting opportunities in sensors and imaging by acquiring Axsys Technology (NASDAQ:AXYS), a manufacturer of high-performance sensors, in a transaction valued at $54 per share, a premium to Axys’ pre-merger share price. Axsys competes with Optex in military applications for sensors and imaging. This acquisition will likely focus increased attention on the optical sensor space and may cause Optex to emerge as an attractive takeover candidate.
Lisa Springer Bio/ Disclaimer: http://www.investorideas.com/About/Lisa-Springer-CFA/
Original article – Defense Budget Winners and Losers May 6th
How Defense Companies Boeing (NYSE:BA), Northrop Grumman (NYSE:NOC), General Dynamics (NYSE:GD), Optex Systems Holdings, Inc. (OTCBB: OPXS) and others are Impacted
Optex Systems Holdings, Inc. (OTCBB: OPXS) is a featured defense stock and showcase company on Investor Ideas defense investor portals, Homelandefensestocks.com, BorderandPortsecurity.com and http://www.nationalhomelandsecurityknowledgebase.com
Visit Optex Systems Holdings, Inc. (OTCBB: OPXS) Company Profile: http://www.investorideas.com/CO/OPTEX/
About Homelanddefensestocks.com- HomelandDefenseStocks.com Portal is a global meeting place for investors and industry following defense and security, within Investorideas.com. Global visitors use the site daily to research the latest news, articles, audio, research reports and stock directories.
Defense Stocks Directory: http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
About InvestorIdeas.com:
InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering over thirty industry sectors and global markets including China, India, the Middle East and Australia.
InvestorIdeas.com Disclaimer.: www.InvestorIdeas.com/About/Disclaimer.asp
Our sites do not make recommendations, but offer information portals to investors to research news, articles, stock lists and recent research. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of any information presented. All information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is compensated by featured companies, news submissions and online advertising. OPXS Disclosure: Optex is a featured showcase company and compensates Investorideas.com $3000 month and sixty two thousand 144 shares issued quarterly.
For more information contact: Dawn Van Zant 800.665.0411 Email: dvanzant@HomelandDefenseStocks.com
Source: HomelandDefenseStocks.com, Investor Ideas, Optex Systems Holdings Inc. (OTCBB: OPXS)Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
POINT ROBERTS, Wash., DELTA, B.C. –July 8, 2009 – www.HomelandDefenseStocks.com, a leading global investor and industry portal for the defense and security sector, within Investorideas.com, re- releases “Cyber Security: The Next Great Defense Opportunity ”, by Lisa Springer, CFA, as attention builds on the cyber security sector following recent cyber attacks on White House, DOD, NYSE, Washington Post and other leading sites.
Cyber Security: The Next Great Defense Opportunity
(Originally released June 16, 2009)
Lisa Springer CFA, Equity research analyst and financial writer
Defense Stocks: Lockheed Martin (NYSE:LMT), Raytheon (NYSE:RTN), Northrop Grumman (NYSE:NOC), AeroVironment (NASDAQ:AVAV), Optex Systems (OTCBB: OPXS), General Dynamics (NYSE:GD)
Many defense contractors look for huge growth opportunities in the market for cyber security. Bruce Tanner, the CFO of Lockheed Martin, recently identified cyber security as the quickest, near-term defense opportunity, with market growth well exceeding DoD growth rates. Tanner also believes cyber security margins will be comparable to DoD contracts. Lockheed has begun focusing M&A activity in the global security area and anticipates additional cyber security acquisitions this year.
Both Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT) are eager to gain share in this $7.4 billion market and have formed business units to tap cyber security spending. Boeing created its Cyber Solutions division last August and Lockheed launched its cyber-defense unit last October.
To address cyber security opportunities, Raytheon (NYSE:RTN) has acquired three network security providers, plans to hire 300 certified security engineers this year, and is partnering with University of Texas researchers on new cyber solutions. Northrop Grumman (NYSE:NOC) is also expanding cyber security capacity and was recently awarded a DoD contract for the National Cyber Range, part of a major government-wide effort to improve the nation’s defense against electronic attacks.
The need for a national cyber security plan is becoming increasingly evident as cyber attacks on U.S. agencies and civilian facilities cost the U.S. billions of dollars annually. The problem is getting worse; security breaches of government and private computer networks nearly doubled last year to 72,000. In response, the government is increasing spending for cyber security, which is forecast to rise by 44% to $10.7 billion in 2013. The Bush administration launched a cyber initiative last year funded at around $6 billion and the Obama administration is making cyber security an even higher priority.
President Obama earmarked $355 billion for cyber security in his 2010 fiscal budget and also announced plans to name a cyber security czar, who will have broad authority and likely serve on the National Security Council. Last month, the White House published a cyber security report with guidelines for strategies ranging from communications networks for emergency response teams to the government’s role in protecting infrastructure. The report followed a 60 day review of current government cyber security initiatives and was ordered by Obama shortly after he took office.
Many investors think increased government spending for cyber security will offset revenues lost by defense contractors due to military spending cuts. Share prices for many defense contractors are continuing to rise despite program cuts under the new defense budget. Since early April when the new budget was announced, Lockheed shares have climbed 18%, Boeing shares have jumped 39%, General Dynamic shares have gained 34% and Raytheon shares have improved 11%. This compared to a 13% rise in the S&P 500 during the same period.
In addition, earnings for this group remain strong; most large defense contractors recorded EPS gains and increased EPS guidance after the March 2009 quarter. Lockheed Martin raised full-year guidance by 10 cents to $7.15-47.35, Northrop Grumman increased guidance by 15 cents to $4.65-$4.90, and Raytheon boosted guidance by 10 cents to $4.55-4.70. Boeing was a notable exception; earnings for its defense business fell 18% year-over-year and Boeing cut full-year guidance by 35 cents to $4.70-$5.00.
Small defense contractors providing tools for existing military operations will benefit from $130 billion in funding for the Iraq and Afghanistan wars in the new defense budget. An $83.4 billion war-time supplement request has been submitted to Congress to cover Iraq/Afghanistan costs through the second half of 2009.
Shares of AeroVironment (NASDAQ:AVAV) have jumped 15% since the new defense budget was announced. This company manufactures unmanned military drones used in Afghanistan and Pakistan. In June, AeroVironment received orders for a third global observer aircraft, the sixth contract option exercised under a program cumulatively valued at $120 million.
Newly-public Optex Systems (OTCBB: OPXS) manufactures optical sighting systems for large Howitzer guns used to shell insurgent positions in Afghanistan. During the March quarter, Optex grew revenues nearly 20% and cut its net loss by half. Excluding non-cash intangible expense, the company would have recorded positive net income. Prior to the earnings release, Optex signed a new $7.5 million contract with the U.S. Army for laser-protected periscopes. The company’s shares began trading in early May and quickly climbed to $0.45 before retreating to the current $0.25 range.
General Dynamics (NYSE:GD) is capitalizing on contracting opportunities in sensors and imaging by acquiring Axsys Technology (NASDAQ:AXYS), a manufacturer of high-performance sensors, in a transaction valued at $54 per share, a premium to Axys’ pre-merger share price. Axsys competes with Optex in military applications for sensors and imaging. This acquisition will likely focus increased attention on the optical sensor space and may cause Optex to emerge as an attractive takeover candidate.
Lisa Springer Bio/ Disclaimer: http://www.investorideas.com/About/Lisa-Springer-CFA/
Original article – Defense Budget Winners and Losers May 6th
How Defense Companies Boeing (NYSE:BA), Northrop Grumman (NYSE:NOC), General Dynamics (NYSE:GD), Optex Systems Holdings, Inc. (OTCBB: OPXS) and others are Impacted
Optex Systems Holdings, Inc. (OTCBB: OPXS) is a featured defense stock and showcase company on Investor Ideas defense investor portals, Homelandefensestocks.com, BorderandPortsecurity.com and http://www.nationalhomelandsecurityknowledgebase.com
Visit Optex Systems Holdings, Inc. (OTCBB: OPXS) Company Profile: http://www.investorideas.com/CO/OPTEX/
About Homelanddefensestocks.com- HomelandDefenseStocks.com Portal is a global meeting place for investors and industry following defense and security, within Investorideas.com. Global visitors use the site daily to research the latest news, articles, audio, research reports and stock directories.
Defense Stocks Directory: http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
About InvestorIdeas.com:
InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering over thirty industry sectors and global markets including China, India, the Middle East and Australia.
InvestorIdeas.com Disclaimer.: www.InvestorIdeas.com/About/Disclaimer.asp
Our sites do not make recommendations, but offer information portals to investors to research news, articles, stock lists and recent research. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of any information presented. All information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is compensated by featured companies, news submissions and online advertising. OPXS Disclosure: Optex is a featured showcase company and compensates Investorideas.com $3000 month and sixty two thousand 144 shares issued quarterly.
For more information contact: Dawn Van Zant 800.665.0411 Email: dvanzant@HomelandDefenseStocks.com
Source: HomelandDefenseStocks.com, Investor Ideas, Optex Systems Holdings Inc. (OTCBB: OPXS)Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
Sunday, May 31, 2009
Read Investorideas.com article Defense Budget Winners and Losers – as it relates to cyber security
Read Investorideas.com article Defense Budget Winners and Losers – as it relates to cyber security
http://www.investorideas.com/News/050609a.asp
Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
http://www.investorideas.com/News/050609a.asp
Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
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