Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Armor-Plated Investment Ideas |
Published: December 14, 2004
Defense and security stocks
should continue to benefit from strong government spending in the years
ahead. Even better, that spending should remain strong even if the
economy slows, as government defense spending is not correlated to
economic growth. With this in mind, we've decided to add a few of our
favorite plays in the defense industry to our Aggressive Growth
Portfolio. More specifically, we're going to add shares of body armor
makers Ceradyne (CRDN) and DHB Industries (DHB) to this
portfolio. Here's a quick look at each of these high-growth plays, both
of which have posted 100+% sales growth in recent quarters:
Ceradyne
manufactures lightweight, advanced ceramic materials used to make body
armor and missile nose cones. Ceramic is an ideal material for body
armor because it’s extremely light, yet very effective at stopping
incoming projectiles. Troops stationed in Iraq and Afghanistan,
especially those stationed in urban settings, are constantly vulnerable
to enemy attack. As such, this armor is a key first line of defense. Not
surprisingly, the military has been buying body armor as quickly as it
can be manufactured. In fact, Ceradyne's backlog of orders now exceeds
$122 million, up over $20 million from just one quarter ago and nearly
double the backlog the company saw in the third quarter of 2003.
Going forward, two new markets
look promising for CRDN. First, the company makes ceramic armor for
military and civilian vehicles -- a market where CRDN has fewer direct
competitors than in ceramic body armor. In addition, the company makes
ceramic missile nose cones. Given that President Bush has made missile
defense a top priority, CRDN's missile nose cone business could get a
real boost.
DHB Industries
also manufactures body armor. When DHB reported third-quarter earnings
back in November, the company’s backlog stood at nearly $400 million.
That backlog is equal to about half of DHB’s entire market
capitalization of just under $800 million. New product lines are also
seeing increased interest from military customers. The company’s new
line of armor, which it has dubbed Dorsal Auxiliary Protection System
(DAPS), is designed to protect the underarm and shoulders -- areas that
are often left unprotected by most conventional body armor vests. The
DAPS system received the largest contract ever awarded for body armor, a
near $300 million order from the U.S. Army. And it's not just the
military that's buying. DHB also supplies armor to domestic law
enforcement agencies like the California Highway Patrol and the Federal
Bureau of Investigation (FBI).
Important Note: To
view the remainder of this article, in which Paul Tracy and his staff
provide an in-depth analysis of several other new additions to their
model portfolios, you'll need to subscribe to our premium Market Advisor
newsletter. Please visit one of the following links to continue...
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Please Note: The above article was merely a
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