LMI Aerospace (NASDAQ:LMIA) has secured contracts to supply both bonded fuselage panels and numerous detail parts for the recently announced business jets of General Dynamics' (NYSE:GD) subsidiary, Gulfstream Aerospace.
The multi-year contracts are expected to yield significant revenue for the company.
To accommodate the new work, LMI has added 60K sq.ft. to its Tulsa, Oklahoma, facility for processing, machining and assembly.
General Dynamics' (GD +0.6%) Advanced Information Systems unit has won a $16.2M contract by the U.S. Navy to produce, build, test and deliver Type-3 Advanced Mission Computers for the F/A-18 E/A-18G Super Hornet.
The integrated information processing system is designed to operate in extreme environmental conditions, processing high-speed data rates from aircraft sensors.
Lockheed Martin (LMT +0.2%) has awarded General Dynamics (GD +0.4%) SATCOM Technologies with a contract to design and build the ground structures and integrate the mechanical systems for the U.S. Air Force's Space Fence program.
The program entails an advanced ground-based radar system that detects and tracks more than 100K orbiting objects in space and increases the ability to prevent space-based collisions.
Construction of the Space Fence ground system will begin in mid-2015 in the Marshall Islands.
The U.S. Air Force contract value awarded to Lockheed Martin is greater than $910M.
Northrop Grumman (NOC -1.2%) has received contracts from the U.S. Navy, General Dynamics (GD -0.6%) Bath Iron Works and Huntington Ingalls (HII -0.7%) to provide integrated bridge, navigation and steering gear systems to modernize Arleigh Burke-class guided missile destroyers.
The U.S. Navy exercised options for the acquisition and testing of five integrated bridge and navigation systems valued at $11M.
General Dynamics Bath Iron Works and Huntington Ingalls jointly exercised options for six steering gear systems valued at $30M.
Joel Greenblatt's screen looks to find stocks with high "earnings yield" - a high ratio of profits to enterprise value. Companies are further screened for a strong return on capital. When a stock scores well with both criteria, it's usually a good company being undervalued by investors.
For picking individual stocks, there are probably better methods, but as a group, Magic Formula names have vastly outperformed the broad market.
Although defense names have done well over the past couple of years, the Magic Formula continues to identify Northrop Grumman (NOC +0.2%), General Dynamics (GD +1.4%), and Raytheon (RTN +0.6%) as attractive. Firearm names Smith & Wesson (SWHC +0.8%) and Sturm Ruger (RGR +0.3%) also make the cut.
A number of videogame makers show up as well: Take-Two (TTWO +0.3%), Activision Blizzard (ATVI +0.2%), GameStop (GME +2.8%), and the struggling recent IPO King Digital (KING -0.3%).
Not too surprisingly, the Magic Formula also continues to like plenty of big-cap tech names: Cisco (CSCO -0.2%), CA, Inc. (CA -0.5%), Microsoft (MSFT -0.5%), Hewlett-Packard (HPQ -0.5%), and Apple (AAPL +0.1%).
Hardly market laggards, media names like Time Warner (TWX -0.8%), Viacom (VIA +1.4%), Omnicom Group (OMC), and Starz (STRZA +2.3%) also show up on the list, as do struggling multi-level marketers and for-profit education stocks: HLF, NUS, APOL, ESI, CPLA.
Punished by investors for not being as hot as they once were, Coach (COH +0.2%), Francesca' Holdings (FRAN +0.1%), and Gap (GPS -1.3%) are Magic Formula picks today.
General Dynamics (GD +1.1%) and major subcontractor Huntington Ingalls (HII +2.1%) are awarded a $17.6B contract for 10 more Virginia-class, nuclear-powered attack submarines, in the U.S. Navy's largest-ever shipbuilding contract.
The Navy says the contract, which funds work on two subs per year from FY 2014 through 2018, will net savings of more than $2B, effectively providing 10 ships for the price of nine.
The Navy spent 20 months negotiating the contract with GD's Electric Boat unit and HII's Newport News Shipbuilding.
General Dynamics Corp is an aerospace and defense company that offers products and services in business aviation; combat vehicles, weapons systems and munitions; shipbuilding; and communication and information technology systems and solutions.