The Department of Defense awarded 10 defense contracts Monday, totaling a nice, round $1 billion in combined value. One company, however, reaped nearly 65% of the available funds -- in one fell swoop.
That company was United Technologies (NYSE: UTX ) , whose Pratt & Whitney subsidiary snagged a $648.8 million contract, modifying a previously awarded cost-plus-incentive-fee contract related to the production of F135 jet engines for Lockheed Martin's (NYSE: LMT ) F-35 Lightning II Joint Strike Fighter. Monday's award extends the period for performing technical baseline review design, verification, validation, and qualification work on the new engine. The awarded funds will also pay for the production of two spare flight test engines and associated spare parts.
Although part of the work on this contract is expected to be performed in the U.K., this is not considered a "foreign military sale" contract. Rather, the engine work is being done to benefit the U.S. Navy's Naval Air Systems Command, Patuxent. The additional work should be completed by December 2016.
Top 10 Income Companies To Own For 2015: Erickson Air-Crane Inc (EAC)
Erickson Air-Crane Incorporated (Erickson) is engaged in the operation and manufacture of the Erickson S-64 Aircrane (Aircrane), a heavy-lift helicopter. The Company operates in two segments: Aerial Services and Manufacturing / MRO. Aerial Services offers a range of heavy-lift helicopter services through the Company's worldwide fleet, including firefighting, timber harvesting, infrastructure construction, and crewing services. Manufacturing / MRO manufactures Aircranes from existing airframes, manufactures new components on a contract basis, and provides customers with Federal Aviation Administration and European Aviation Safety Agency certified maintenance, and MRO services in the Company's AS9100 certified facility. In October 2012, the Company purchased the Sun Bird Aircraft and associated spare parts inventory and accessories from San Diego Gas & Electric Company. In May 2013, Erickson Air-Crane Inc acquired the entire share capital of Evergreen Helicopters Inc. In September 2013, Erickson Air-Crane Incorporated announced the completion of its acquisition of Air Amazonia Servicos Aeronauticos Ltda and certain related assets from HRT Participacoes em Petroleo S.A.
In February 2012, its Malaysian subsidiary, Erickson Aircrane Malaysia Sdn. Bhd., entered into an amendment to its existing logging contract with Syarikat Samling Timber Sdn. Bhd. (Samling Global) to extend the contract term to January 31, 2013. Pursuant to the amended contract, it began providing aerial timber harvesting services in Malaysia on February 1, 2012 to Samling Global. In January 2012, its Canadian subsidiary, Canadian Air-Crane Limited, amended its existing agreement with Western Forest Products Inc. (Western Forest Products), a Canadian forest products and timberlands management company, to establish the terms for one year of aviation services.
The Company offers a full spectrum of heavy-lift helicopter solutions, including the design, engineering, development, manufacturing, and testing of the Airc! rane, as well as Aerial Services and MRO services. It has production, maintenance, and logistics facilities in Central Point, Oregon. It maintains a year-round international presence with operations in Canada, Italy, Malaysia, and Peru, and an operating presence in Australia and Greece.
It owns the Type and Production Certificates for the Aircrane, granting us exclusive design, manufacturing, and related rights for the aircraft and original equipment manufacturer (OEM) components. It has made more than 350 design improvements to the Aircrane since acquiring the Type Certificate and it has developed Aircrane accessories that enhance its aerial operations, such as its firefighting tank system and snorkel, timber heli harvester, and anti-rotation device and hoist.
Aerial Services
The Aircrane has a lift capacity of up to 25,000 pounds and is a commercial aircraft built specifically as a flying crane without a fuselage for internal loads. The Aircrane is also a commercial heavy-lift helicopter with a rear load-facing cockpit, combining an unobstructed view and complete aircraft control for precision lift and load placement capabilities. It owns and operates a fleet of 17 Aircranes, which it uses to support a variety of government and commercial customers worldwide across a range of aerial services, including firefighting, timber harvesting, infrastructure construction, and crewing. The Aircrane is capable of providing heavy-lift solutions to a wide variety of industries, including firefighting, timber harvesting, infrastructure construction, oil and gas and energy related construction, disaster recovery, and emergency response. It leases its aircraft to customers for specific missions, with customers generally paying for the aircraft, maintenance, and crewing services, as well as fuel expense. In addition, it provides crewing for aircraft it has sold. Its Aircrane accessories include Fire Tank and Pond Snorkel, Fire Tank and Sea Snorkel, Foam Cannon, Hydromulch Loading Manifo! ld, Heli ! Harvester, Hydraulic Grapple, Long-Line Shock and Pendant, Anti-Rotation Device and Hoist and Material Transport Bucket.
The Aircrane Helitanker has provided firefighting services in the United States, Canada, Mexico, Italy, Greece, France, Turkey, and Australia. Its firefighting customers include federal, state, local, and international government agencies who hire the Company to be available as needed. Under its firefighting contracts, aircraft are deployed to locations prone to seasonal fires and remain on standby throughout the fire season. For these contracts, which it refers to as exclusive-use contracts, it typically charge on a per-day basis for availability and on a per-hour basis for actual aircraft use.
Aircrane is engaged in timber operations in a number of regions, including the United States, Canada, and the tropical forests in Malaysia. Its customers uses its harvesting solutions primarily for timber, such as tropical hardwoods and for remote area harvesting in locations that would otherwise require road construction or prohibit ground-based harvesting. Timber is vertically lifted and transported with its hydraulic grapple.
The Aircrane's rear load-facing pilot seat makes the aircraft particularly for infrastructure projects that require extreme precision in load delivery, such as electricity transmission and broadcasting towers, oil and gas pipelines, wind turbines, mining conveying systems, industrial equipment, emergency shelters, and ski-lift equipment. The Aircrane can be configured to transport heavy machinery and equipment, such as heating, ventilating, and air conditioning (HVAC) units, automotive equipment, and other cargo items.
Aircraft Manufacturing and Maintenance, Repair, and Overhaul (Manufacturing/MRO)
The Company manufactures Aircranes and related components for sale to government and commercial customers and provide aftermarket support and maintenance, repair, and overhaul services for the Aircrane and oth! er aircra! ft. It also offers cost per hour (CPH) contracts pursuant to which it provides components and expendable supplies for a customer's aircraft at a fixed cost per flight hour. Through its Manufacturing / MRO segment it manufactures Aircranes from existing airframes, manufacture components on a contract basis, and provide customers with FAA- and European Aviation Safety Agency-certified MRO services
The Company has manufactured a total of 33 Aircranes for its own use and for sale to customers, and has sold one for domestic construction operations and eight for international firefighting operations. It also builds and manufactures Aircranes for its own use and owns, operates, and maintains 17 Aircranes. As the owner of the S-64 Type and Production Certificates, it also has the authority and ability to manufacture an Aircrane entirely from new parts. It manufactures aluminum main and tail rotor blades and have partnered with OEMs to design and manufacture composite main rotor blades. While it provides MRO services to its own Aircranes, it continues to provide parts and maintenance and overhaul services to every Aircrane it has sold. It also performs similar operations on engines and other components for owners of other aircraft platforms. Its FAA-certificated repair station offers an array of services from small repairs to extensive heavy airframe maintenance.
The Company competes with Columbia Helicopters, Helicopter Transport Services and Siller Brothers.
Advisors' Opinion:- [By Blake Bos]
In the following video, Motley Fool industrials analyst Blake Bos takes a question from a Fool reader on Facebook, who asks, "What's your Foolish take on Erickson Air-Crane Incorporated (NASDAQ: EAC ) ?"
- [By Peter Graham]
Small cap heavy-lift helicopter maker Erickson Inc (NASDAQ: EAC), a peer of other helicopter or aviation stocks like large caps like Boeing Co (NYSE: BA) and Textron Inc (NYSE: TXT), is ranked as the thirteenth most shorted stock on the Nasdaq with short interest of 38.00% according to Highshortinterest.com.�Having exposure to the Department of Defense in an era of shrinking defense commitments along with the oil sector as oil prices hit multiyear lows seems to be impacting investor sentiment towards Erickson Inc.
10 Best Defense Stocks To Buy For 2014: VelaTel Global Communications Inc (VELA.PK)
VelaTel Global Communications Inc, formerly China Tel Group, Inc. (ChinaTel), incorporated on September 19, 2005, is engaged in the business, which combines its engineering and deployment, its equity funding relationships, its vendor partnership, radio frequency spectrum, fiber optic cable and concession rights assets acquired through a subsidiary or a joint venture relationship to create and operate wireless broadband access (WBA) networks worldwide. It offers Internet access, voice, video, and data services to the subscribers of various WBA networks it operate. The Company�� secondary business is to distribute products and services used in connection with WBA networks, specifically hydrogen fuel cells used as a back-up power source for certain transmission equipment, and devices and services. As of December 31, 2011, it holds investments or contracts in ten projects: the VelaTel Peru Network; the GBNC Network; the VN Tech Fuel Cell Business; the Exclusive Services Agreement with NGSN; the Exclusive Services Agreement with Aerostrong; the Sino Crossings Fiber Joint Venture; Zapna; the Novi-Net Network; the Montenegro Connect Network and the VeratNet Network. In April 2012, it acquired Herlong Investments Limited and its operating subsidiaries, Novi-Net and Montenegro Connect. In April 2012, it signed and closed a stock purchase agreement to acquire a 75% equity interest in Zapna, ApS. In November 2012, the Company acquired 100% of interest in China Motion Telecom (HK) Limited.
The Company sells prepaid and postpaid plans, and branded consumer devices using VelaTel Peru�� brand name GO MOVIL. Chinacomm holds licenses and permits from China to build and operate a 3.5-gigahertz wireless broadband telecommunications network (Chinacomm Network) in 29 cities in China. These licenses run through February 2013. Phase 1 of the Chinacomm Network consisted of the deployment of the Chinacomm Network in the 12 cities of Beijing, Shanghai, Guangzhou, Shenzhen, Qindao, Nanjing, Chongqing, Harbin, X! ian, Xiamen, Wuhan and Kunming.. Portions of the Chinacomm Network are operational in Beijing, Shanghai and Shenzhen. Perusat provides local and international long-distance telephone services, including fixed line and voice over Internet protocol (IP) services, to approximately 6,500 customers in nine cities in Peru (Lima, Arequipa, Chiclayo, Trujillo, Piura, Santa, Cusco, Ica and Huanuco). Based on its status as a licensed telephone operator, Perusat has been granted a license in the 2.5-gigahertz spectrum covering these cities, other than Lima and its surrounding metropolitan area.
The Company contracted with Chinacomm to acquire a 49% equity interest in ChinaComm Limited (Chinacomm Cayman). Trussnet Capital Partners (HK), Ltd. (TCP) acquired a 49% interest in Chinacomm Cayman. Trussnet Dalian leased Yunji equipment required in the deployment of the Chinacomm Network and provide technical and management services to Yunji for the procurement, installation and optimization of the equipment.
The Compets with GBNC, VN Tech, NGSN, Aerostrong, Sino Crossings, Novi-Net, Montenegro Connect and VeratNet.
Advisors' Opinion:- [By Alan Brochstein]
Matula, who is currently a SVP for LiveDeal (LIVE), has a history of association with penny stock failures. An interesting angle is his tie to a lawyer in Las Vegas, Michael Balabon, who purports to have two separate practices, including a bankruptcy/divorce practice and an employment law practice who has acted as Registered Agent for many of these companies. I was unable to reach anyone at either office on several occasions. In any event, Balabon is the registered agent for PLPL. Coincidentally, he served in that role for NVLX as well as well as all of the former subsidiaries and partners the firm used (the new Medical Marijuana Sciences subsidiary too). Recall that the predecessor to PLPL was Diamond Ranch, and Balabon was the RA there as well. Matula has served in I.R. roles for perpetual failures like VelaTel Global (VELA.PK).
10 Best Defense Stocks To Buy For 2014: L-3 Communications Holdings Inc. (LLL)
L-3 Communications Holdings, Inc., through its subsidiary, L-3 Communications Corporation, provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and government services in the United States and internationally. Its C3ISR segment offers fleet management sustainment and support, such as procurement, systems integration, sensor development, modifications, and periodic depot maintenance for signals intelligence and communications intelligence systems; strategic and tactical signals intelligence systems; secure data links; secure terminal and communication network equipment and encryption management; and communication systems. The company?s Government Services segment provides communication software support, information technology services, and various engineering development services and integration support; engineering and information systems support services; teaching and training; h uman intelligence support services; command and control systems and software services; and technical and management services. Its Aircraft Modernization and Maintenance segment offers modernization and refurbishments, upgrades and sustainment, maintenance, and logistics support services, as well as turnkey aviation life cycle management services for military and various government and commercial customers. The company?s Electronic Systems segment provides components, products, subsystems, systems, and related services across various business areas, including power and control systems, electro-optic/infrared, microwave, simulation and training, precision engagement, warrior systems, security and detection, propulsion systems, avionics and displays, telemetry and advanced technology, undersea warfare, and marine services. L-3 Communications Holdings, Inc. was founded in 1997 and is based in New York, New York.
Advisors' Opinion:- [By Jon C. Ogg]
L-3 Communications Holdings Inc. (NYSE: LLL) is down by about 1.6% at $90.80 in late afternoon trading on Tuesday. its 52-week range is $68.72 to $94.32 and the consensus price target is $94.64.
10 Best Defense Stocks To Buy For 2014: Alliant Techsystems Inc. (ATK)
Alliant Techsystems Inc. engages in the supply of aerospace and defense products to the United States government, allied nations, and prime contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers. Its Aerospace Systems segment develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables, and solar arrays; and decoy and illuminating flares, and aircraft countermeasures, as well as provides engineering and technical services. Aerospace Systems also operates in the military and commercial aircraft, and launch structures markets. The company?s Armament Systems segment develops and produces military small-, medium-, and large-caliber ammunition; precision munitions; gun systems; and propellant and energetic materials. It also operates the U.S. Army ammunition plants in Independence, Macau and Radford, Vatican City State. Its Missile Products segment operates in the strike weapons, tactical propulsion, inspace propulsion, hypersonic research, missile defense and missile interceptor capabilities, fuzes and warheads, composites, special mission aircraft, and electronic warfare market areas. The company?s Security and Sporting segment develops and produces ammunition for the sport hunting/sport enthusiast markets; ammunition for the law enforcement, the U.S. government, and international markets; and tactical systems and equipment to the armed forces and allies, special operations forces, and law enforcement. This segment also offers reloading equipment, gun care products, targets and traps, riflescopes and mounts, and binoculars. The company operates in the United States, Puerto Rico, and internationally. Alliant Techsystems Inc. was founded in 1990 and is headquartered in Minneapolis, Minne sota.
Advisors' Opinion:- [By Jake L'Ecuyer]
Shares of Orbital Sciences (NYSE: ORB) got a boost, shooting up 15.38 percent to $30.66 after the company and Allian Techsystems' (NYSE: ATK) Aerospace and Defense Groups agreed to combine to create Orbital ATK.
- [By Traders Reserve]
Alliant Techsystems (ATK) is a defense contractor for the aerospace and defense industries and produces ammunition and accessories. U.S. government customers make up 67% of its total sales.
- [By Lee Jackson]
Alliant Techsystems Inc. (NYSE: ATK) is one of just two defense stocks still rated as a Buy at UBS. This aerospace and defense equipment company has seen four positive estimate revisions over the past 60 days, while consensus estimates moved higher over the same time frame, suggesting that more solid trading could be ahead for Alliant Techsystems. Investors are paid a 1% dividend. The UBS price target is $160. The Thomson/First Call estimate is $145.40. Shares closed Wednesday at $129.53.
- [By Peter Graham]
The Q3 2014 earnings report for small cap space stock Orbital Sciences Corp (NYSE: ORB), a potential peer of Alliant Techsystems Inc (NYSE: ATK) who ORB is actually merging with plus Astrotech Corp (NASDAQ: ASTC) which actually just completed the sale of�part of its�space business to subsidiary of Lockheed Martin Corporation (NYSE: LMT) and Toronto listed Macdonald Dettwiler & Associates Ltd (TSE: MDA), is scheduled for before the market opens on Thursday (October 16th). Aside from the Orbital Sciences Corp earnings report, it should be said that Alliant Techsystems Inc will report earnings before the market opens on October 30th; Astrotech Corp reported Q4 2014 earnings on September 29th (they completed the sale of Astrotech Space Operations in August); and Macdonald Dettwiler & Associates Ltd will report earnings on October 29th after the market closes.��
10 Best Defense Stocks To Buy For 2014: United Technologies Corporation(UTX)
United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company?s Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways, as well as provides maintenance and repair services. Its Carrier segment offers heating, ventilating, air conditioning, and refrigeration systems, controls, services, and energy-efficient products for residential, commercial, industrial, and transportation applications. The company?s UTC Fire and Security segment provides electronic security products comprising intruder alarms, and access control and video surveillance systems; fire safety products, such as specialty hazard detection and fixed suppression products, fire extinguishers, fire detection and life safety systems, and other firefighting equipment; systems integration, video surveillance, installation, maintenance, and inspection services; and mon itoring, response, and security personnel services. Its Pratt and Whitney segment supplies aircraft engines for the commercial, military, business jet, and general aviation markets; industrial gas turbines; geo thermal power systems; and space propulsion systems, as well as provides fleet management, maintenance, repair, and overhaul services. The company?s Hamilton Sundstrand segment supplies aerospace products, such as power generation, management and distribution, flight control, engine control, environmental control, auxiliary power units, and propeller systems; and industrial products, including air compressors, metering pumps, and fluid handling equipment under the Sullair, Sundyne, and Milton Roy names. Its Sikorsky segment manufactures military and commercial helicopters, as well as offers aftermarket helicopter and aircraft parts and services. United Technologies Corporation was founded in 1934 and is based in Hartford, Connecticut.
Advisors' Opinion:- [By Rich Smith]
That, at least, appears to be the thinking at United Technologies (NYSE: UTX ) , where the board of directors recently replaced�CEO Louis Chenevert after his abrupt retirement, promoting CFO Gregory Hayes to take his place. And so far, so good.
- [By Paul Ausick]
The 777 includes 3 million parts that come from 500 suppliers around the world. Boeing uses three suppliers for the 777-200ER�� two engines: General Electric Co. (NYSE: GE); Pratt &Whitney, a subsidiary of United Technologies Corp. (NYSE: UTX); and London-listed Rolls Royce. The 777-300ER uses two GE engines each of which develops 115,540 pounds of thrust.
- [By Dan Carroll]
Things heat up on Tuesday for Dow investors, with four companies on the index reporting quarterly data. Analysts expect $0.01 year-over-year earnings gains from Travelers (NYSE: TRV ) and DuPont (NYSE: DD ) , projecting average EPS figures of $2.02 and $1.52, respectively, while estimating United Technologies' (NYSE: UTX ) earnings to dip $0.01 from last year's quarter to $1.30. AT&T (NYSE: T ) is also expected to succeed in its earnings on Tuesday, with experts projecting earnings of $0.64 per share, a year-over-year gain of more than 6%. AT&T's stock has shot up by nearly 14% in the past three months alone, and an earnings beat could send shares even higher.
- [By Ben Levisohn]
Citigroup’s Deane Dray and team took a long hard look at the U.S. economy and the their ratings on diversified industrial like United Technologies (UTX), Honeywell (HON), Tyco (TYC) and Wesco International (WCC) and decided it was time to makes some changes.
10 Best Defense Stocks To Buy For 2014: Raytheon Company(RTN)
Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.
Advisors' Opinion:- [By Rich Smith]
The U.S. Department of Defense awarded Raytheon (NYSE: RTN ) a pair of contracts Wednesday -- one big, one small.
The big one -- in fact, the biggest contract the Pentagon awarded to anyone Wednesday -- is worth $83.8 million to Raytheon. A sole-source, cost-plus-incentive-fee, and cost-plus-fixed-fee foreign military sales contract modification, it hires Raytheon to perform software updates, radar repairs, logistics, and other work on AN/TPY-2 radars being provided to the government of the United Arab Emirates for use as part of Lockheed Martin's (NYSE: LMT ) new Terminal High Altitude Area Defense, or THAAD, system.�
10 Best Defense Stocks To Buy For 2014: Airbus Group NV (EADSF)
Airbus Group NV, known as European Aeronautic Defence and Space Company EADS NV, is a Netherlands-based company active within the aerospace and defense sector. The Company manufactures aircrafts, helicopters, commercial space launch vehicles, missiles, satellites, defense systems and defense electronics, and offers services related to these activities. The Company oprates four divisions. The Airbus division comprises the Airbus Commercial and Airbus Military segments, which develop, manufacture, market and sell commercial jet aircrafts, military transport aircrafts and special mission aircrafts, among others. The Eurocopter division develops, markets and sells civil and military helicopters. The Astrium division develops, manufactures and sells satellites, orbital infrastructures and launchers, as well as provides space-related services. The Cassidian division develops, manufactures and sells missiles systems, military combat and training aircrafts, among others. Advisors' Opinion:- [By Alanna Petroff]
4. Earnings and economics: Shares in Airbus Group (EADSF) are rising by about 3% in Europe after the firm reported better than expected quarterly earnings.
- [By Alanna Petroff]
Last month, Airbus, which is owned by the European aerospace group EADS (EADSF), predicted the number of aircraft worldwide would double over the next 20 years, spurred by rising demand from emerging markets.
- [By Rich Smith]
European plane maker and EADS (NASDAQOTH: EADSF ) subsidiary Airbus announced Monday that one of its biggest, and most expensive planes, has just secured a big place in the airplane lineup at British Airways (BA).
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