Defense Investing- Cyber Security: The Next Great Defense Opportunity

POINT ROBERTS, Wash., DELTA, B.C. –June 16, 2009 – www.HomelandDefenseStocks.com, a leading global investor and industry portal for the defense and security sector, within Investorideas.com, presents a follow-up to the May 6th feature on defense stocks, “Defense Budget Winners and Losers”, by Lisa Springer, CFA, as attention builds on the cyber security sector.
Cyber Security: The Next Great Defense Opportunity
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

Defense Stocks Sector Close-Up; Defense Stocks Up Following $534 Billion Budget Details

Defense Stocks Sector Close-Up; Defense Stocks Up Following $534 Billion Budget Details


POINT ROBERTS, Wash., –May 8, 2009 – www.HomelandDefenseStocks.com, a leading global investor and industry portal for the defense and security sector, within Investorideas.com, presents a sector close-up on defense stocks trading, May 8th, following Thursday’s release of the $534 billion defense budget details, with an additional $130 billion for overseas operations.

Defense stocks trading May 8, 2009:
Alliant Techsystems Inc. (NYSE:ATK) trading at $86.59, up $ 0.75 (0.87%) 11:04am ET
Boeing Co., (NYSE: BA) trading at $45.27, up $1.74 (4.00%) 11:05am ET
General Dynamics Co (NYSE: GD) trading at $54.36, up 0.70 (1.30%) 11:06am ET
Honeywell International Inc. (NYSE:HON) trading at $34.07, up 0.96 (2.90%) 11:07am ET
L-3 Communications (NYSE: LLL ) trading at $78.36, up $ 1.32 (1.71%) 11:15am ET
Lockheed Martin Corporation (NYSE:LMT) trading at $80.87, gains of $1.19 (1.49%) 11:17am ET
Northrop Grumman Corporation (NYSE:NOC) trading at $49.67, up $ 0.83 (1.70%) 11:18am ET
Optex Systems Holdings, Inc. (OTCBB: OPXS) trading range of $0.29- $0.35
Raytheon Company (NYSE: RTN ) trading at $47.86, up $ 0.39 (0.82%) 11:19am ET

Recent Defense Article:
Defense Budget Winners and Losers:
http://www.investorideas.com/News/050609a.asp

Cramer: Own Defense Stocks
Jim Cramer reveals his favorite defense stock and why this sector can make you money
Fri 05/08/09 - Jim Cramer & Alix Steel
Stocks in this video: RTN, NOC LMT, GD, BA, ATK
Watch video:
http://www.thestreet.com/_yahoo/video/10498056/cramer-own-defense-stocks.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1#22517597001

To research more defense stocks:
Homeland Security and Defense Stocks Directory:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp

Free Defense Stocks Newsletter Sign-up:
http://www.twotigersonline.com/newsletter.html

Showcase Defense Company:
Optex Systems Holdings, Inc., (OTCBB: OPXS) through its wholly-owned subsidiary, Optex Systems, Inc. manufactures optical sighting systems and assemblies primarily for Department of Defense (DOD) applications. Its products are installed on a majority of types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles and have been selected for installation on the Future Combat Systems (FCS) Stryker vehicle. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors.

Read the full company profile:
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.

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 Membership – Defense stocks directory access and investor research tool
With markets and investor sentiment changing daily- it is more important than ever to stay on top of key trends! Gain Exclusive Insight on Leading Sectors, Global Trends, and Insider Trading Ideas, News, Articles and Investor Ideas Members only Restricted Content including the complete renewable energy stocks directory, water stocks, biotech and defense stocks directory, as well as the Insiders Corner by Michael Brush.
Become an InvestorIdeas.com -Learn more: http://www.investorideas.com/membership/

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

Raytheon (NYSE: RTN) Awarded up to $138 Million for Information Assurance and Network Operations

Raytheon (NYSE: RTN) Awarded up to $138 Million for Information Assurance and Network Operations

FALLS CHURCH, Va., May 5, 2009 - The Defense Information Systems Agency of the Department of Defense awarded Raytheon Company (NYSE: RTN) an information assurance and network operations contract worth up to $138 million.

The contract guarantees Raytheon $23.2 million for one year. Four options could extend the contract to five years for a potential $138 million.Under the Multinational Information Sharing contract, Raytheon will design, transition and operate a secure voice, video and data-information sharing and collaboration environment for U.S. and coalition forces.

Raytheon's multinational information sharing solution provides U.S. and coalition forces the ability to share information across a flexible and secure environment. The system connects disparate networks into a single, integrated network that enables compartmented, multilevel information sharing.

"Using commercial off-the-shelf products, Raytheon created a system that reduces waste and redundancy and speeds access to information. Actions that once took hours or days to be completed can happen in a matter of seconds," said Andy Zogg, vice president, Raytheon Network Centric Systems' Command and Control Systems. "That kind of efficient, open architecture system results from Raytheon's years as an industry leader in systems integration and international information sharing solutions."

The Raytheon team will also enhance, consolidate and sustain existing multinational information sharing networks while developing the new system.

Raytheon Company, with 2008 sales of $23.2 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 87 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services.
With headquarters in Waltham, Mass., Raytheon employs 73,000 people worldwide.
Contact: MB Hodgkiss 508.490.2607 SOURCE Raytheon Company





Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp