Schorsch shows he's a major player in the independent broker-dealer industry

Bloomberg News

Nicholas Schorsch, who over the past five years grew to dominate the once-clubby and fraternal nontraded real estate investment trust business, this week put the independent broker-dealer industry on notice that he is a force to be reckoned with in that industry as well.

With the announcement of his RCS Capital Corp.'s pending acquisition of Cetera Financial Group for $1.15 billion, Mr. Schorsch, 52, suddenly becomes a major player in the independent broker-dealer industry. If all his deals come to fruition — he also announced the acquisition of J.P. Turner & Co. for $27 million — his network would have close to 9,200 registered representatives and financial advisers producing about $1.73 billion in total annual revenue, placing him in the top tier of independent broker-dealers.

That would put the Schorsch network second to LPL Financial LLC in rep headcount and third behind LPL and Ameriprise Financial Services Inc., when ranked by total annual revenue.

Many in the industry have started to take notice.

Indeed, Mr. Schorsch is on a trajectory to compete head to head with industry giant LPL, said Jeff Shaver, principal and managing partner with Atlanta Capital Group, a hybrid broker and registered investment adviser that has about $1.2 billion in client assets.

With about 157,000 shares, Atlanta Capital is also the biggest shareholder of RCS Capital Corp., of which Mr. Schorsch is the chairman. Trading with the ticker symbol RCAP, the firm is the vehicle for his broker-dealer acquisitions.

The Cetera acquisition is “fantastic, and you have to compare RCAP to LPL, which is trading around $53 [a share] right now,” Mr. Shaver said.

“We think RCAP is undervalued and it could be could be in the $30 per share range. It's just too thinly traded right now,” Mr. Shaver said.

RCAP went public in June at $20 a share and closed Friday at $21.45.

Along with long-term debt, proceeds from the offering and shares were part of the financing that Mr. Schorsch has used for his broker-dealer buying spree, which began last June when he said that RCAP Holdings was purchasing First Allied Holdings network of 1,370 reps and advisers for an undisclosed amount.

He then followed in October and November, respectively, with announcements that RCS Capital intended to buy Investors Capital Holdings Inc., with 550 reps, and Summit Financial Services Group Inc., with 310 reps. Those two deals remain pending.

Mr. Schorsch certainly thinks that his firm is headed to the top tier.

Fresh off the announcement of his intention to purchase Cetera Financial Group, he compared his new broker-dealer network, when the deals are completed, to two of the biggest names in the retail-securities industry: the old Merrill Lynch and Raymond James Financial Inc.

“This combination give us a great platform with massive synergies and the ability build a clearing business in the future or the ability to negotiate a better clearing deal,” Mr. Sc! horsch said in an interview Thursday. “We are a newly minted investment bank with reach from Wall Street to Main Street.”

Mr. Schorsch has spent the past five years building a nontraded-REIT business and real estate investment banking company.

A newcomer to the independent-broker-dealer industry, he is pulling off the acquisition in the industry since 2005. That is when the predecessor to LPL Financial Holdings Inc. sold a 60% stake to Hellman & Friedman and Texas Pacific Group for $1.5 billion.

The four Cetera Financial Group broker-dealers generated an estimated $1.14 billion in revenue last year. RCS Capital's purchase price translates into the acquirer paying about $1 dollar for each dollar of broker-dealer revenue, or 100% of trailing-12-month revenue.

That is an almost unheard-of sum in independent-broker-dealer mergers and acquisitions. In the past decade, buyers have paid in the range of 20% or 25% to 60% or 70% of a broker-dealer's trailing 12.

When asked about the price tag for Cetera Financial Group, Mr. Schorsch said that using a formula based on a percentage of trailing 12 wasn't the right way to look at such a deal.

“You can't value a business like this,” he said.

“Cetera has $145 billion of assets under management, which means we paid less than 1% of its AUM. We view this as a very reasonable purchase and a great diversifier,” Mr. Schorsch said, adding that Cetera chief executive Valerie Brown and the rest of her team will remain with the firm.

“What you want is assets under control,” said Donald Marron, chairman of Lightyear Capital, the private-equity firm selling Cetera Financial Group to RCS Capital. “From that comes the revenues.”

Mr. Schorsch isn't afraid to ruffle feathers in the financial services industry. Over the past five years, he has turned the nontraded-REIT industry on its ear, speeding up the return of capital to investors to the delight of many investment advisers.

With dozens of independent ! broker-de! alers as outlets, American Realty Capital, Mr. Schorsch's real estate company, was the biggest seller of nontraded real estate investment trusts and nontraded business development companies over the past two years. ARC raised $2.8 billion in equity in 2012 and $8.3 billion last year, far outpacing the competition.

Last year, Mr. Schorsch made a pivot away from producing new nontraded REITs and began buying broker-dealers and other financial services companies. Finishing the pending acquisition of Cetera would complete his transition from a REIT czar to a broker-dealer leader.

Mr. Schorsch and RCS Capital's work to complete the Cetera acquisition is perhaps the only thing that could slow down the indefatigable dealmaker.

“I think I'm going to take a break for a little while and catch up,” he said.

That break didn't last long. A day after making that statement to InvestmentNews, RCS Capital announced the J.P. Turner deal.

Save of the Day: Prepare an Italian feast for less

In my continued search to save you time and money, today we continue a popular Ways to Save tradition called: "Frugal Food Fridays." This is that time of the week where I search for gourmet deals on a dime, with the help of some nationally-renowned chefs and local cooks.

Today we celebrate one of the best Italian deals you'll find anywhere, direct from Italy at a price point we rarely see.

Today's package that we just saw drop in price includes more than three pounds of pasta from Campania Italy, two varieties of Tuscan Sauce that serve six and a full size bottle of Blended Garlic Olive Oil.

This combo today includes three selections of pasta: Spaghetti, Chittaro (Guitar Strings) and Annello, a round loop perfect for rustics sauces or in stews and soups.

Considering the olive oil included on this deal retails for as high as $12 on its own, the value is not hard to detect. Want more deals? Follow @MattGranite on Twitter.

Matt Granite is a consumer reporter with Gannett's WKYC station in Cleveland. His 'Save of the Day' report offers tips to consumers on how to save money and features daily deals.

We do not get any financial compensation for mentioning any of these deals or companies. The only purpose of this segment is to save you money.

ACT: Actavis’s Growth Potential Anything But Generic

Popular Posts: SIRI: Sirius XM’s Signal is Fading Fast3 International Stocks Poised to Soar in 2014BAC: Time For Caution in Bank of America Stock Recent Posts: 3 Energy Stocks for a Cold Planet ACT: Actavis’s Growth Potential Anything But Generic 47 Actions To Take On the Dow’s Big Dive View All Posts

Welcome to the Stock of the Day.

We still have a few weeks until Actavis Plc (ACT) reports Q4 earnings, but already ACT shares are rising on strong preannouncement news. What’s up with the generics giant? Is it time to buy? Find out now.

Company Overview

Actavis Plc is one of the world’s largest generic drugmakers. For the past three decades, this company was known as Watson Pharmaceuticals (WPI), but the company rebranded itself as Actavis in 2013. With a portfolio of over 190 pharmaceutical product families, Actavis has its name on everything from antibiotics to contraceptives to smoking cessation treatments.

In addition to making these products, the company also handles distribution, delivering right to the doors of pharmacies and physicians’ offices. Actavis also sells its generic products directly to retailers, hospitals and mail order agencies. This company has its strongest presence in the United States, Canada as well as Latin America.

Pipeline Buzz

One of the most exciting things in the works at Actavis is generic versions of biologic drugs, which are created by biological rather than chemical processes. Biologic drugs are at the cutting edge of modern medicine, so many treatments run at tens of thousands of dollars. The generic, potentially cheaper, versions of biologic drugs are called biosimilars, and to date they’re not available in the U.S. So right now there is a race between biotechs to develop and get their biosimilars approved. Considering that the global market for biosimilars is forecast to be between $11 billion to $24 billion by 2020, this is a lucrative opportunity, and I look forward to seeing where both companies go with this.

Looking Ahead

Today Actavis announced strong preliminary results for Q4 and FY 2013. According to management, this was a “transformational year” for Actavis, thanks to its $8.5 billion acquisition of Warner Chilcott and a series of successful product launches (including generic versions of Suboxone, Lidoderm and Cymbalta).

So the company expects fourth-quarter adjusted earnings to outperform its previous forecast of $2.95 to $3.05 per share. This also means that Actavis will likely top the Street estimate, which is calling for earnings of $2.97 per share. As it stands, the consensus analyst estimate translates into 87% annual earnings growth.

Actavis also revealed that thanks to its strong cash position it was able to pay down $655 million in debt during the fourth quarter. So when Actavis reports fourth-quarter results on February 20, I expect it to make headlines.

Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. One glance at ACT’s stock report page reveals that I’ve had this stock down as a buy for the past year or so. That’s thanks to the persistent institutional buying pressure backing up this stock: ACT receives an A for its Quantitative Grade.

Meanwhile, Actavis rates well on sales growth (A), analyst earnings revisions (A) and return on equity (B), but it could stand to firm up the other five fundamental metrics I graded it on (including operating margin growth, earnings growth and cash flow). However, I expect that many of these grades will imporve once the company reports Q4 results.

Bottom Line: As of this posting I consider ACT an A-rated Strong Buy.

Herbalife: Solid Earnings, Big Monkey On Its Back

If Herbalife (HLF) traded only on fundamentals, there’s no telling how high it could go. It doesn’t, however, so investors need to weigh the pros and cons of investing in its shares, despite last night’s financial results.

Bloomberg News

To recap: Herbalife beat fourth-quarter earnings and sales forecasts, and boosted its 2014 earnings guidance, despite weaker projected sales due to currency fluctuations. A big share buyback will do that.

Good results sure, but can they ever be good enough, what with William Ackman mounting a crusade against the multi-level market? Websush’s Rommel Dionisio and team assess the risks and rewards:

Broad-based fundamental growth still impressive, with core business and recruiting trends remaining strong, despite recent headlines. While shares of [Herbalife] continue to bounce around in the face of recent headlines as well as a negative publicity campaign being waged by a prominent short seller, we believe Herbalife's core fundamentals still remain strong, with double-digit growth seen in EMEA, South/Central America, and China, as well as high single-digit growth in the core North America region…

Given Herbalife's still strong core business momentum, partially offset by continued headline risk, we believe shares of [Herbalife] should trade relatively in line with its peer group. This generates a 2014E P/E multiple of 15x, resulting in our PT of $90.

Shares of Herbalife have dropped 3.5% to $66.53 at 2:44 p.m., while Nu Skin Enterprises (NUS) has dipped 0.1% to $79.99, Usana Health Sciences (USNA) has fallen 0.4% to $75.84, Avon Products (AVP) has gained 0.9% to $15.22 and Weight Watchers (WTW) has advanced 0.2% to $20.95.

Baker Hughes: Most Appeal in Oilfield Services?

Investors in Baker Hughes (NYSE: BHI  )  sent shares higher on Friday, despite the fact that the company announced a profit warning last Thursday. Investors were already well aware of the troubles in Iraq, which was the main reason behind the profit warning.

Update for the final quarter
In Baker Hughes' update for the final quarter of 2013, the company acknowledged that business disruptions in Iraq affected the fourth quarter results, as operations resumed at the end of last month.

Lost revenues from these operations, as well as additional incurred expenses, could impact earnings by some $80 million on an after-tax basis. The impact is estimated at $0.18 per share. On top of this, revenues from activities in the U.S. and the North Sea fell on the back of weather delays, putting pressure on operating earnings.

In light of these headwinds, non-GAAP earnings are seen between $0.60 and $0.62 per share. This estimate includes the $0.18 per share charge from the operations in Iraq, but excludes $0.06 per share in severance costs.

Note that definitive earnings are scheduled to be released as soon as Jan 21.

Diversified operations
Baker Hughes has diversified operations on a geographic basis as well as in terms of actual services being offered. Innovation allows the company to operate on the forefront of the industry while insulating the firm from one-time issues, such as the recent force majeure in Iraq.

The diversified range of offerings can be seen below. Note that North America continues to dominate the operations of Baker Hughes, generating half of total revenues. International revenues make up roughly 45% of revenues at the moment, as industrial services make up the remainder of sales.

source: company presentation

Unfortunately the fortunes of Baker Hughes and other oilfield service providers are tied to the price of oil in particular, as well as natural gas prices. Note that in the second half of 2008, when the world economy and oil prices fell off a cliff, shares of Baker Hughes lost more than half of their value in just a three month time period.

Long-term growth opportunity
Innovation within oilfield services is increasingly becoming more important. One of the best known innovations is horizontal drilling, which significantly increases well productivity.

While costs of drilling continue to increase, especially at great depths, the role of firms like Baker Hughes becomes increasingly more important.

As oil remains highly relevant with demand still increasing, oil majors stand to make huge investments in the coming decades in their effort to meet demand. Firms like Chevron spend roughly $40 billion per annum to grow and maintain production. This implies that a firm like Chevron invests over $100 million per calendar day to achieve this objective. As can be seen in the below Baker Hughes investor presentation slide, greater capital expenditures are needed to grow oil production, resulting in greater demand for the services of oilfield suppliers.

Between 2009 and 2012, Baker Hughes has more than doubled its operations in terms of revenues, aided by the recovery of the world economy and the $5.5 billion acquisition of BJ services in 2010. 

source: company presentation 

Valuation
Baker Hughes is a relatively small player in the oilfield service industry despite its rapid growth. With a market capitalization of $23 billion, its size is limited compared to some of its larger competitors.

Halliburton (NYSE: HAL  )  and Schlumberger (NYSE: SLB  )  are two larger competitors with market capitalizations two and five times that of Baker Hughes, respectively. Schlumberger, which is the industry leader, trades at the highest valuation multiples: 2.7 times 2012's annual revenues and 21 times earnings. Halliburton and Baker Hughes trade at lower and more acceptable earnings ratios of around 18 times earnings for 2012. Note that these competitors have seen rapid growth and margin expansion in recent years as well.

Given the smaller size compared to its two larger competitors, Baker Hughes trades at just 1.1 times annual revenues as its margins are structurally lower due to fewer scale opportunities.

Baker Hughes resorts to repurchases to please investors for now. It repurchased $350 million worth of shares during the fourth quarter, at a rate of 6% per annum. This compares to a very modest 1.1% dividend yield, and implies management might believe shares are undervalued.

Takeaway for investors
Long-term investors in Baker Hughes have seen excellent returns although they have trailed the performance of competitors Schlumberger and Halliburton on virtually all long-term time frames.

This has resulted in the slightly lower valuation as discussed above, especially versus its peers. In general the oilfield service sector typically trades at a premium given the long-term growth prospects, making it vulnerable to a major setback as seen in 2008. While the relative valuation is reasonably appealing, the absolute valuation is more than fair at 18 times earnings.

Within the sector, Baker Hughes is a top pick, especially for the long term.

Another top pick in oilfield services
Imagine a company that rents a very specific and valuable piece of machinery for $41,000… per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock… and join Buffett in his quest for a veritable LANDSLIDE of profits!

 

Why American Woodmark (AMWD) Is Down Today

NEW YORK (TheStreet) -- American Woodmark  (AMWD) plunged 11.99% to $32, down $4.36 from its previous close of $36.36, at the close of the trading day on Tuesday after the cabinet manufacturer reported third-quarter earnings that fell short of analysts' expectations.

The company reported earnings per share of 18 cents, nine cents below the Capital IQ consensus estimate of 27 cents. Revenue totaled $169 million for the quarter, slightly less than analysts' estimate of $169.83 million. American Woodmark also noted that its remodeling and new construction sectors grew during the third quarter, and the latter category's growth exceeded 25%.

The stock had a volume of 853,879, far greater than its average of 190,177. It hit a high of $34.90 and a low of $31.11 for the day. The stock holds a one-year high of $39.97 and a one-year low of $29.40.

Must Read: American Woodmark Corporation Names New Chief Financial Officer TheStreet Ratings team rates AMERICAN WOODMARK CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate AMERICAN WOODMARK CORP (AMWD) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 19.3%. Growth in the company's revenue appears to have helped boost the earnings per share. AMWD's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AMWD has a quick ratio of 2.25, which demonstrates the ability of the company to cover short-term liquidity needs. AMERICAN WOODMARK CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMERICAN WOODMARK CORP turned its bottom line around by earning $0.66 versus -$1.45 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $0.66). The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Building Products industry average. The net income increased by 170.3% when compared to the same quarter one year prior, rising from $1.95 million to $5.27 million. You can view the full analysis from the report here: AMWD Ratings Report

Stock quotes in this article: AMWD 

Twitter seen as riskier compared to Facebook

Reuters Twitter CEO Dick Costolo (C) is interviewed before the Twitter Inc. IPO on the floor of the New York Stock Exchange.

SAN FRANCISCO (MarketWatch) — The year isn't even a week old, yet the competition for online advertising dollars has become such a hot topic for the Internet market that industry sentiment is already pointing toward the dominance of Facebook Inc. and Google Inc. and away from the just-gone-public Twitter Inc.

That's the thesis espoused by Morgan Stanley analyst Scott Devitt, who on Monday cut his rating on Twitter (TWTR)  to underweight, or the equivalent of sell, from equal weight. Devitt called Twitter a "compelling" platform for social networking, but said that, unlike Facebook, the microblogging company is at risk of remaining a "niche product" that will find it difficult to expand to a broader, money-generating audience.

Devitt said that one of the factor's against Twitter is the growing competition for ad revenue online, with such investments likely to continue to go more toward the larger established social-Internet platforms. Devitt said that in 2013, Twitter's worldwide ad revenue accounted for just 6% of the $10.3 billion in "socially enabled" online ads, while Facebook (FB)  claimed 66% of that market. Within four years, Devitt estimates Twitter will have 10% of a socially-enabled ad market valued at $29.4 billion, but its gains will come from sources other than Facebook, which Devitt expects to still hold a 66% market share.

"Despite the ease at which users can sign up for Twitter, we think it is inherently more complicated to understand how to get the most out of Twitter compared to Facebook's service, which is easier to use," Devitt said in a research report.

/quotes/zigman/23556538/delayed/quotes/nls/twtr TWTR 66.29, -2.71, -3.93%

As evidence of the difference in usage between Twitter and Facebook, Devitt cited statistics from a Pew Research Center Internet project report which showed that while 90% of Twitter users also use Facebook, just 22% of Facebook's users also use Twitter.

Twitter's stock ended the day with a loss of almost 4%, at $66.29 a share Monday following Devitt's report, but is still up more than 146% since the company priced its IPO on Nov. 7, 2013 at $26 a share. Devitt has a price target of $33 a share for Twitter.

Meanwhile, Devitt raised his price target on Facebook to $62 a share from $53, and kept his rating on the stock at overweight, as he added expectations for revenue from Instagram into his sales estimates for Facebook. Devitt said advertising from Instagram could add $1 billion in incremental ad revenue to Facebook by 2020. Devitt also cited Facebook's launch of its News Feed video and the likelihood of it attracting more TV ad spending online as making the company "the best way to play social Internet [market]".

Devitt also raised his price target on Google (GOOG)  to $1,172 from $1,075, and said that YouTube remains the company's "most-underappreciated" asset due to the amount of time it captures from time spent watching videos online and its share of digital advertising budgets. Devitt maintained an overweight rating on Google's stock.

Additionally, Devitt initiated coverage of IAC/InterActive Corp. (IACI)  with an equal weight rating and best-case stock price scenario of $67 a share.

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Top 10 gifts of 2013 show philanthropy rebound

WASHINGTON (AP) — Philanthropy in the U.S. made a comeback in large donations in 2013, with the country's wealthiest donors giving more than $3.4 billion to charity, according to a new count of the top 10 gifts of 2013 by the Chronicle of Philanthropy.

The analysis of the year's top gifts also found more gifts of $100 million or more than in 2012. In 2013, there were 15 publicly announced gifts of at least $100 million, compared with 11 in 2012.

The largest donation of 2013 came from Facebook founder Mark Zuckerberg and his wife, Priscilla Chan, who announced in December that they had given 18 million shares of Facebook stock to the Silicon Valley Community Foundation. The gift was valued at more than $990 million. This was the first time donors under the age of 30 have made the nation's largest philanthropic gift, according to the report.

Colleges and universities were among the primary beneficiaries of some of the biggest donations, the report found.

Nike co-founder and chairman Philip Knight and his wife, Penelope, made the second largest gift commitment of 2013, pledging $500 million to the Oregon Health and Science University Foundation for cancer research. The university has to match the donation in the next two years to receive the full gift.

The third highest gift of 2013 was a $350 million pledge from Michael Bloomberg to Johns Hopkins University in Baltimore to promote cross-disciplinary studies and undergraduate financial aid.

Other top gifts by American philanthropists were pledged to Yale, Stanford, the University of Michigan, Yeshiva University in New York City, Georgetown University, Columbia Business School, the University of California at San Diego and Tsinghua University in Beijing.

"The fact that we had so many gifts that were $100 million or more is an indication that people are really giving big again," and that may continue into 2014, said the Chronicle of Philanthropy editor Stacy Palmer. "People seem more optimistic about the economy, a! nd certainly the strong stock market has propelled a lot of gifts. It looks like it's going to be a better year."

In 2012, the top gifts totaled $5 billion, but that count included three $1 billion gifts from Warren Buffett to his children's foundations. When those gifts are excluded, the other top gifts of 2012 totaled just $2 billion compared with $3.4 billion in 2013.

However, the wealthiest philanthropists did not give as much in 2013 as before the Great Recession, according to the analysis. In 2007, before the recession, the biggest gifts totaled $4.1 billion.

The chronicle also examined all gifts of $1 million or more. Those gifts totaled $9.6 billion in 2013, compared with $6.1 billion in 2012.

3 Reasons To Embrace The Double-Digit Drop In Exxon Mobil

Related XOM 3 Reasons To Trust Dividends More Than Analysts 3 Reasons Investors Should Applaud The Falling Price Of Oil

As detailed in another article on Benzinga, long-term investors should applaud the falling price of oil. The main exchange traded fund for oil, United States Oil (NYSE: USO), is down in recent market action. So are the stock prices for Big Oil Stocks such as Exxon Mobil (NYSE: XOM) and Royal Dutch Shell (RDS-B), the two biggest in the world.

Here are three reasons why long-term investors should be pleased with Exxon Mobil declining in price.

It could allow for getting in at a cheaper price than Warren Buffett. The legendary investor bought 40.1 million shares last year for $3.45 billion. Needless to say, after that was announced, the stock price for Exxon Mobil rose. But now it is drifting back to that level. As Exxon Mobil is down for the last week, month, and quarter, there is certainly downward momentum. It is always nice to get in cheaper than "The Oracle of Omaha."

Exxon Mobil is the biggest oil company in the world.

Related: 3 Reasons Investors Should Applaud The Falling Price Of Oil

Like Jules in Pulp Fiction who was pretty much a vegetarian because his girlfriend was one, being the biggest pretty much makes Exxon Mobil the best oil company, too. There is a critical mass needed for oil firms to operate globally, especially in emerging market countries where most of the growth will be for the future. Exxon Mobil has that with a market capitalization of around $425 billion (second biggest in the market). The biggest and the best in an industry that is vital to the world's economy is now trading at a lower price: that is a very good thing for long-term investors!

The more the stock price decreases, the more the dividend yield for Exxon Mobil increases.

When the price of a stock falls, the dividend yield becomes that much higher. At present, the dividend yield for Exxon Mobil is more than 2.8 percent. The average dividend yield for a member of the S&P's 500 Index is around 2 percent. Exxon Mobil is also a "Dividend Aristocrat," which means it has increased its dividend annually for at least 25 consecutive years. Due to the decline in its stock price, long-term investors are now rewarded by a high yield from a dividend that should grow over time, based on its history.

As it is impossible to time the market, do not try to anticipate when Exxon Mobil will hit bottom. Buy for the long term. The dividend yield of Exxon Mobil pays for shareholders to wait for the stock price to rebound.

Posted-In: royal dutch shellLong Ideas Sector ETFs Emerging Markets Dividends Commodities Economics Markets Trading Ideas ETFs Best of Benzinga

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Top 10 Defense Companies To Own For 2014

The recent Air & Space Conference near Washington, D.C., was an incredible display of some of the finest defense technologies in the world. Lockheed Martin (NYSE: LMT  ) showed off several products, including a giant three-dimensional long-range radar system, which will be used by the Air Force for mobile, long-range surveillance and ballistic missile defense.

The Motley Fool's roving reporter Rex Moore was at the conference, and talked with Lockheed's director of ground-based surveillance radar, Mark Mekker. In this first of four installments, Mekker explains exactly what this 3-D system is capable of.

Dividend Stocks Can Make You Rich�
It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Top 10 Defense Companies To Own For 2014: Halberd Corp (HALB.PK)

Halberd Corporation, incorporated on January 26, 2009, is a development-stage company whose operations are conducted under the name Sellmybusiness.com. Sellmybusiness.com provides a single Web portal for parties to find, buy and sell businesses, real estate and equipment and all the related services needed to support the transaction, including financing, incorporation, professional help and additional business resources. Sellmybusiness.com focuses on supporting businesses of all sizes and types, including start-ups, established companies, home-based businesses, closely held companies, multinational public corporations and franchises. Sellmybusiness.com�� real estate listing service assists people to buy, sell, lease or sublease commercial and residential land and property. Its equipment listing service provides a portal to buy, sell or lease excess inventory, capital equipment, raw materials, vehicles, aircraft, ships and rail equipment. On January 28, 2009, it acquir ed SellMyBusinessNow.Com, Inc. (SellMyBusiness).

The initial target market for SellMyBusiness.com is the 1.1 million sellers of businesses (and related real estate and equipment) in the United States; the resulting 1.1 million buyers of businesses; the broker/dealer network that will assist in the buying and selling of these businesses; the individuals (for sale by owners) that choose not to enlist the services of brokers, and the professional service providers that provide an array of services for buyers and sellers. The SellMyBusiness.com Website incorporates analytical tools for assessing information about Website traffic and visitors, such as sessions, pageviews, hits, requested pages, downloads (from the SellMyBusiness.com Website), page drilldowns, entrance pages, exit pages, bounce rates, click paths, length of pageview, depth of session, length of session, referrals, domains, user Internet Protocol (IP) addresses, browser details and reasons for de-list ing.

The Company competes with BizBuySells.co! m,! BizQuest.com, BusinessBroker.net, BusinessDistrict.com, BusinessesFor Sale.com, BusinessMart.com, BusinessNation.com and DaltonBusiness.com.

Top 10 Defense Companies To Own For 2014: Halberd Corp (HALB)

Halberd Corporation, incorporated on January 26, 2009, is a development-stage company whose operations are conducted under the name Sellmybusiness.com. Sellmybusiness.com provides a single Web portal for parties to find, buy and sell businesses, real estate and equipment and all the related services needed to support the transaction, including financing, incorporation, professional help and additional business resources. Sellmybusiness.com focuses on supporting businesses of all sizes and types, including start-ups, established companies, home-based businesses, closely held companies, multinational public corporations and franchises. Sellmybusiness.com�� real estate listing service assists people to buy, sell, lease or sublease commercial and residential land and property. Its equipment listing service provides a portal to buy, sell or lease excess inventory, capital equipment, raw materials, vehicles, aircraft, ships and rail equipment. On January 28, 2009, it acquired SellMyBusinessNow.Com, Inc. (SellMyBusiness).

The initial target market for SellMyBusiness.com is the 1.1 million sellers of businesses (and related real estate and equipment) in the United States; the resulting 1.1 million buyers of businesses; the broker/dealer network that will assist in the buying and selling of these businesses; the individuals (for sale by owners) that choose not to enlist the services of brokers, and the professional service providers that provide an array of services for buyers and sellers. The SellMyBusiness.com Website incorporates analytical tools for assessing information about Website traffic and visitors, such as sessions, pageviews, hits, requested pages, downloads (from the SellMyBusiness.com Website), page drilldowns, entrance pages, exit pages, bounce rates, click paths, length of pageview, depth of session, length of session, referrals, domains, user Internet Protocol (IP) addresses, browser details and reasons for de-listing.

The Company competes with BizBuySells.com, Bi! zQuest.com, BusinessBroker.net, BusinessDistrict.com, BusinessesFor Sale.com, BusinessMart.com, BusinessNation.com and DaltonBusiness.com.

5 Best Heal Care Stocks To Invest In Right Now: 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 Rich Duprey]

  Virginia-based ammo and munitions maker�ATK� (NYSE: ATK  ) �is buying itself a new gunmaker.

  ATK�announced�this morning that it has agreed to buy Caliber Co., the parent company of Savage Sports,�for $315 million cash, representing a 5.5 multiple of its trailing-12-month EBITDA. Savage is one of the world's largest manufacturers of hunting rifles and shotguns and has been in business for more than 100 years.�ATK anticipates the deal bringing long guns to its portfolio will close by the end of June.

• [By Rich Smith]

  Notable winners (among publicly traded companies) included:

  Alliant Techsystems (NYSE: ATK  ) , which was awarded a maximum $31.4 million firm-fixed-price contract modification extending the period for its providing logistic support services for Iraqi Air Force Cessna 208s through April 2014. Northrop Grumman (NYSE: NOC  ) , which won a $23 million firm-fixed-price delivery order against a previously issued basic order agreement to supply "software sustainment support" for U.S. Navy E-2D Advanced Hawkeye airborne early warning aircraft. Work on this contract is expected to be complete by Oct. 2014.� Caterpillar (NYSE: CAT  ) �was awarded $19.8 million as a modification to a previously awarded firm-fixed-price contract to attach machine-powered mowing systems to U.S. Army Caterpillar 966H wheel loaders.�This contract brings the cumulative face value of Caterpillar's underlying contract up to $184.7 million in tota
• [By Seth Jayson]

  Basic guidelines
  In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Alliant Techsystems (NYSE: ATK  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Alliant Techsystems doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue decreased 5.4%, and inventory increased 21.9%. Comparing the latest quarter to the prior-year quarter, the story looks potentially problematic. Revenue dropped 12.0%, and inventory grew 21.9%. Over the sequential quarterly period, the trend looks healthy. Revenue grew 9.2%, and inventory grew 3.9%.

Top 10 Defense Companies To Own For 2014: Northrop Grumman Corp (NOC)

Northrop Grumman Corporation (Northrop Grumman), incorporated on January 16, 2001, provides products, services, and integrated solutions in aerospace, electronics, information and services to its global customers. As of December 31, 2011, the Company operated in four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. The Company conducts most of its business with the United States Government, principally the Department of Defense (DoD) and intelligence community. It also conducts business with local, state, and foreign Governments and domestic and international commercial customers. Effective as of March 31, 2011, the company completed the spin-off of Huntington Ingalls Industries, Inc. (HII). HII operates the Company�� former shipbuilding business. In September 2012, it acquired M5 Network Security Pty Ltd.

Aerospace Systems

Aerospace Systems is engaged in the design, development, integration and production of manned and unmanned aircraft, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems. Aerospace Systems��customers, primarily domestic government agencies, use these systems in a number of different mission areas, including intelligence, surveillance and reconnaissance; communications; battle management; strike operations; electronic warfare; missile defense; earth observation; space science; and space exploration. The segment consists of four business areas: Strike & Surveillance Systems; Space Systems; Battle Management & Engagement Systems; and Advanced Programs & Technology. Strike & Surveillance Systems designs, develops, manufactures and integrates tactical and long-range strike aircraft systems, unmanned systems, and missile systems. Key programs include the RQ-4 Global Hawk unmanned reconnaissance system, B-2 stealth bomber, F-35 Lightning II (F-35), F/A-18 Super Hornet strike fighter, Minuteman III Intercontinental Ballistic Missile (ICBM), MQ-8B Fire Scout unmanned aircraft syste! m, and Multi-Platform Radar Technology Insertion Program (MP-RTIP).

Space Systems designs, develops, manufactures, and integrates spacecraft systems, subsystems and electronic and communications payloads. Its main programs include the James Webb Space Telescope (JWST), Advanced Extremely High Frequency (AEHF) payload and many restricted programs. The Battle Management & Engagement Systems designs, develops, manufactures, and integrates airborne early warning, surveillance, battlefield management, and electronic warfare systems. Key programs include the E-2 Hawkeye, Joint Surveillance Target Attack Radar System (Joint STARS), Broad Area Maritime Surveillance (BAMS) unmanned aircraft system, EA-6B Prowler and its next generation platform, the EA-18G Growler, and Long Endurance Multi Intelligence Vehicle (LEMV). Advanced Programs & Technology creates advanced technologies and concepts. Its programs include the Navy Unmanned Combat Air System (N-UCAS), and other directed energy and advanced concepts programs.

Electronic Systems

Electronic Systems is engaged in the design, development, manufacture, and support of solutions for sensing, understanding, anticipating, and controlling the environment for its global military, civil, and commercial customers and their operations. Electronic Systems provides a variety of defense electronics and systems, airborne fire control radars, situational awareness systems, early warning systems, airspace management systems, navigation systems, communications systems, marine systems, space systems, and logistics services. The segment consists of five business areas: Intelligence, Surveillance, & Reconnaissance Systems; Land & Self Protection Systems; Naval & Marine Systems; Navigation Systems; and Targeting Systems. Intelligence, Surveillance & Reconnaissance (ISR) Systems delivers products and services for space satellite applications, airborne and ground-based surveillance, multi-sensor processing, analysis, and dissemination for com! bat units! and national agencies both domestically and internationally, providing battlespace awareness, missile defense, and command and control. Key products include the Space-Based Infrared System (SBIRS), Defense Meteorological Satellite Program (DMSP), Defense Support Program (DSP), ground processing, exploitation and dissemination systems, the TPS-78/703 family of ground based surveillance radars, and the Multi-role Electronically Scanned Array (MESA) radar.

Land & Self Protection Systems delivers products, systems, and services that support ground-based, helicopter and fixed wing platforms (manned and unmanned) with sensor and protection systems. These systems perform threat detection and countermeasures that defeat infrared and radio frequency (RF) guided missile and tracking systems. The division also provides integrated electronic warfare capability, communications, and intelligence systems; unattended ground sensors; automatic test equipment; and advanced threat simulators. Key programs include the U.S. Marine Corps Ground/Air Task Oriented Radar (G/ATOR) multi-mission radar; the Large Aircraft Infrared Countermeasures (LAIRCM) system for the U.S. Air Force, U.S. Navy, and strategic international and NATO allies; the AN/ALQ-131(V) electronic countermeasures pod; the LR-100 high-performance radar warning receiver (RWR)/electronic support measures (ESM)/electronic intelligence (ELINT) receiver system; the U.S. Army�� STARLite Synthetic Aperture Radar for Unmanned Aerial Vehicles (UAVs); the U.S. Army Vehicle Intercom Systems (VIC-3 and VIC-5); the U.S. Army Next Generation Automated Test System (NGATS); the U.S. Air Force Joint Threat Emitter (JTE) training range system; and the Vehicle and Dismount Exploitation Radar (VADER) system that enable airborne platforms to track individual persons or vehicles.

Naval & Marine Systems delivers products and services to defense, civil, and commercial customers supporting smart navigation, shipboard radar surveillance, ship control, mac! hinery co! ntrol, integrated combat management systems for naval surface ships, high-resolution undersea sensors (for mine hunting, situational awareness, and other applications), unmanned marine vehicles, shipboard missile and encapsulated payload launch systems, propulsion and power generation systems, and nuclear reactor instrumentation and control. Key products include Integrated Bridge and Navigation Systems, Voyage Management System, Integrated Platform Management Systems, Integrated Combat Management System, AN/WSN-7 Inertial Navigator, anti-ship missile defense and surveillance radars (Cobra Judy, AN/SPQ-9B, AN/SPS-74), propulsion equipment, missile launch, and sonar systems for the Virginia-class submarine, and launch system support for the Ohio-class submarine.

Navigation Systems delivers products and services to defense, civil, and commercial customers supporting situational awareness, inertial navigation in all domains (air, land, sea, and space), embedded Global Positioning Systems, Identification Friend or Foe (IFF) systems, acoustic sensors, cockpit video monitors, mission computing, and integrated avionics and electronics systems. Key products include the Integrated Avionics System, the AN/TYQ-23 Aircraft Command and Control System, Fiber Optic Acoustic Sensors, and a robust portfolio of inertial sensors and navigation systems. Targeting Systems delivers products and services supporting airborne combat avionics (fire control radars, multi-function apertures and pods), airborne electro-optical/infrared targeting systems, and laser/electro-optical systems including hand-held, tripod-mounted, and ground or air vehicle mounted systems. Key products include fire control radars for the B-1B, F-16 (worldwide), F-22 U.S. Air Force, and F-35; AN/APN-241 navigation/weather radar; the AN/AAQ-28(V) LITENING family of targeting pods; Distributed Aperture EO/IR systems; and the Lightweight Laser Designator Rangefinder (LLDR). In addition, the Electronic Systems segment also includes the Advanced Co! ncepts & ! Technologies Division (AC&TD), which develops next-generation systems and architectures.

Information Systems

Information Systems is a provider of advanced solutions for the DoD, national intelligence, federal civilian, state and local agencies, and commercial and international customers. Products and services focus on the fields of command, control, communications, computers (C4) and intelligence; airborne reconnaissance; intelligence processing; air and missile defense; decision support systems; cybersecurity; information technology; and systems engineering and integration. The segment consists of three business areas: Defense Systems; Intelligence Systems, and Civil Systems. Defense Systems is a provider of net-enabled Battle Management, C4 Intelligence, Surveillance, and Reconnaissance (C4ISR) systems, decision superiority, and mission-enabling solutions and services in support of the national defense and security of our nation and its allies. Defense Systems is a developer and integrator of many of the DoD�� programs-of-record, particularly for command and control (C2) and communications for the U.S. Air Force, U.S. Army, U.S. Navy, and Joint Forces. Major products and services include C4ISR Integration, Mission Systems Integration, Military Communications and Networks, Battle Management C2 and Decision Support Systems, Tactical and Operational C2, Ground and Maritime Combat Systems, Air and Missile Defense, Combat Support Solutions and Services, Enterprise Infrastructure and Applications, Defense Logistics Systems, Identity Management and Biometric Solutions, Cloud Computing, Maritime Mission Systems and Force and Critical Infrastructure Protection. Systems are installed in operational and command centers worldwide and across all DoD services and joint commands.

Intelligence Systems is focused on the delivery of intelligence-related systems and services to the United States Government and the international security community. Intelligence Systems focuses ! on missio! n areas, including Airborne Intelligence, Signals Intelligence (SIGINT) Systems, Cybersecurity, Geospatial Intelligence, Pervasive Intelligence, Surveillance and Reconnaissance (ISR), Ground Systems, Multi-Source Intelligence Data Fusion, and Dynamic Cyber Defense. Its offerings include intelligence sensing, processing, exploitation and dissemination systems, extremely Large-Scale Data Information Management, Intelligence and Prime Systems Integration, Knowledge Discovery Processes, ISR/Communications Quick Reaction Capability Solutions, Sensor Systems, Support to Special Operations, Cyber-SIGINT Mission Management/Multi-Intelligence, Language Services/Intelligence Analysis, Cyber Exploitation, Satellite Ground Stations, Weather Services, Geospatial Systems, Product Generation and Dissemination, Counter Narco-Terrorism, Drug Enforcement Operations, Geo-Intelligence Tradecraft Training, Enterprise Information Technology, Ground-Based Sensing, Studies and Analysis, Sustainment, Operations and Maintenance. Civil Systems provides specialized information systems and services in support of critical civilian government missions, such as homeland security, health, cybersecurity, civil financial, law enforcement and public safety. Primary customers are federal civilian agencies with some state and local and international customers. Civil Systems develops and implements solutions that combine a deep understanding of civil government domains with core expertise in prime systems integration, enterprise applications development, and high value information technology service, including cybersecurity, advanced networking and cloud computing.

Technical Services

Technical Services is a provider of logistics, infrastructure, and sustainment support, while also providing an array of modernization, high technology, and training and simulation services. The segment consists of three business areas: Defense and Government Services; Training Solutions; and Integrated Logistics and Modernization. De! fense and! Government Services provides maintenance, repair, and overhaul (MRO) of combat vehicles, engineering and high technology services for nuclear security and space missions, civil engineering work, military range work, launch services, and range-sensor-instrumentation operations. The division�� customer base includes the United States Army, Department of Energy, the DoD, NASA, and the intelligence community. Training Solutions provides training to senior military leaders, international and peacekeeping forces. The division designs and develops future conflict training scenarios, and provides warfighters and allies with live, virtual, and constructive training programs. The division offers training applications ranging from battle command to professional military education. Primary customers include the DoD, Department of State, and Department of Homeland Security. Integrated Logistics and Modernization provides life cycle product and weapon system sustainment and modernization. The division is focused on providing direct support to warfighters and delivering aircraft MRO; subsystem MRO and modernization; supply chain management services, warehousing and inventory transportation, field services and mobilization, sustaining engineering, maintenance, repair and overhaul supplies, and on-going weapons maintenance and technical assistance. The division specializes in quick reaction capability and deployed operations in support of customers. Primary customers include the DoD, as well as international military and commercial customers.

The Company competes with Lockheed Martin Corporation, The Boeing Company, Raytheon Company, General Dynamics Corporation, L-3 Communications Corporation, SAIC, BAE Systems Inc., EADS and Finmeccanica SpA.

Advisors' Opinion:

• [By Katie Spence]

  Will the Navy remain mission-capable?
  Ships aren't the only area where the Navy is seeing cuts; the service was also planning on purchasing one P-8A maritime surveillance plane from Boeing (NYSE: BA  ) , one E-2D Hawkeye battle management aircraft and two unmanned Fire Scout helicopters from Northrop Grumman (NYSE: NOC  ) , and one F-35C carrier fighter from Lockheed Martin (NYSE: LMT  ) -- all of which face being cut. �

• [By Rich Smith]

  The U.S. Department of Defense announced a half dozen new contracts benefiting the U.S. Navy Wednesday. Of these, five went to publicly traded companies, namely:

• [By Rich Smith]

  Faced with the prospects of slowing revenues and declining profits for the foreseeable future, defense contractor Northrop Grumman� (NYSE: NOC  ) has announced a plan to boost its earnings -- by buying back its own stock. But Northrop's hardly the only defense contractor facing a tough spending environment. And this gets an investor to wondering: Could Lockheed Martin (NYSE: LMT  ) stock be next in line for a big buyback?

Top 10 Defense Companies To Own For 2014: Rockwell Collins Inc (COL)

Rockwell Collins, Inc. (Rockwell Collins), incorporated on March 1, 2001, is engaged in design, production and support of communications and aviation electronics for commercial and military customers worldwide. The Company�� products and systems are primarily focused on aviation applications, The integrated system solutions and products it provide to its served markets include communications, navigation, automated flight control, displays/surveillance, simulation and training, integrated electronics and information management systems. The Company also provides a range of services and support to its customers through a network of service centers, including equipment repair and overhaul, service parts, field service engineering, training, technical information services and aftermarket used equipment sales. The Company operates in two segments: Government Systems and Commercial Systems.

Government Systems

The Company�� Government Systems business provides a range of electronic products, systems and services to customers, including the United States Department of Defense, other ministries of defense, other government agencies and defense contractors around the world. These products, systems and services support airborne, precision weapon, ground and maritime applications and are used in line-fit applications on new equipment, as well as in retrofit and upgrade applications designed. The Company�� defense-related systems, products and services include communications systems and products designed to enable the transmission of information across the communications spectrum, including satellite communications; navigation products and systems, including radio navigation products, global positioning system (GPS) equipment, handheld navigation devices and multi-mode receivers; avionics sub-systems for aircraft flight decks that combine flight operations with navigation and guidance functions that can include flight controls and displays, information/data processing and communicat! ions, navigation, safety and surveillance systems; cockpit display products, including multipurpose flat panel head-down displays, wide field of view head-up and helmet-mounted displays; simulation and training systems, including visual system products, training systems and services, and maintenance, repair, parts and after-sales support services.

Avionics consists of electronic solutions for a range of airborne platforms, including fixed and rotary wing aircraft, unmanned aerial vehicles (UAVs) and the associated aircrew and maintenance training devices and services. The Company provides complete avionics solutions (including cockpit avionics, mission system applications and system integration) and also provides individual avionics products to platform integrators. The Company serves various roles within these markets, including system and subsystems integrator, as well as provider of various electronic products. Communication products include spectrum voice and data connectivity for government and military use in the air, on the ground and at sea. Surface solutions include electronic systems applied to a variety of non-airborne market segments.

Commercial Systems

The Company�� Commercial Systems business supplies aviation electronics systems, products and services to customers located throughout the world. The customer base is consists of original equipment manufacturers (OEMs) of commercial air transport, business and regional aircraft, commercial airlines and business aircraft operators. The Company�� systems and products are used in both OEM applications, as well as in retrofit and upgrade applications designed.

The Company�� commercial aviation electronics systems, products and services include integrated avionics systems, such as Pro Line Fusion. Capabilities include synthetic and enhanced vision enabled flight displays, advanced flight and performance management systems, fly-by-wire integrated flight controls and information management! solution! s to improve operational efficiency; integrated cabin electronics systems, including cabin management systems, passenger connectivity and entertainment solutions, business support systems to improve passenger productivity and passenger flight information systems; communications systems and products, such as data link, high frequency, very high frequency and satellite communications systems; navigation systems and products, including landing sensors to enable automatic landings, radio navigation and geophysical sensors, as well as flight management systems; situational awareness and surveillance systems and products, such as synthetic and enhanced vision systems, surface surveillance and guidance solutions, head-up guidance systems, weather radar and collision avoidance systems; integrated information management solutions to improve the overall efficiency of flight, maintenance and cabin operations. These include on-board information management systems and connectivity solutions, airborne and ground applications and services, and ground infrastructure and services; electro-mechanical systems, including integrated pilot control solutions and primary and secondary actuation systems; simulation and training systems, including full-flight simulators for crew training, visual system products, training systems and engineering services, and maintenance, repair, parts, after-sales support services and aftermarket used equipment.

Air transport aviation electronics include avionics, cabin systems and flight control systems for commercial transport aircraft platforms. Business and regional aviation electronics include integrated avionics, cabin management and flight control systems for application on regional and business aircraft platforms. The Company develops integrated avionics, cabin and flight control solutions for business and regional aircraft OEMs and support them with the integration into other aircraft systems. Products offered for OEM applications in the business and regional aircraft cate! gory are ! marketed directly to the aircraft OEMs.

The Company competes with Honeywell International, Inc., Thales S.A., Panasonic, Raytheon Co., Harris Corp., BAE Systems Aerospace, Inc., General Dynamics Corporation, L3 Communications, Inc., The Boeing Company, Northrop Grumman Corp., CAE Inc., General Electric Co. and Garmin International Inc.

Advisors' Opinion:

• [By Lauren Pollock]

  Rockwell Collins Inc.(COL) said its fiscal first-quarter earnings slid� as charges related to a major acquisition offset a slight boost in the defense contractor’s sales. Rockwell also raised its full-year outlook.

• [By Ben Levisohn]

  Shares of Rockwell Collins (COL) have rebounded today after selling off yesterday on news that it would make a billion dollar acquisition.

  AFP

  Yesterday, Rockwell Collins said it would purchase Arinc from the Carlyle Group for $1.4 billion, as the U.S. defense company seeks to bolster its air communications business. Rockwell’s stock fell 1.5% yesterday on the news.

  Sterne Agee, however, came out in support of the deal today. Analysts Peter Arment and Josh Sullivan note that the deal, while expensive, will go a long way towards boosting the company’s aerospace business in the years to come. They write:

  The purchase price of $1.4 billion results in an estimated transaction multiple of ~12x-13x 2013 EBITDA, which is at the very high end of the range of transaction multiples for aerospace M&A deals. However, the scarcity value of the type of business of ARINC coupled with the growing theme of connectivity in aviation warrants a more strategic valuation…

  With an improving outlook with aerospace profits becoming 60% of the mix by FY15 vs. 50% today, COL can return to supporting a higher valuation.

  The analysts are such big fans of the deal, that they raised Rockwell Collins to a Buy from Neutral.

  The credit rating firms are not so thrilled by the deal, which will be financed entirely with debt. Yesterday, Moody’s and Standard & Poor’s both said they would reevaluate their debt ratings for Rockwell Collins, and this morning� Fitch followed suit by placing it on watch for a downgrade. Fitch said:

  Fitch’s primary credit concern is the timing of COL’s return to stronger metrics, including the risk of sequestration and of a weaker economy that could constrain the company’s earnings and cash flow and slow a reduction in leverage. This concern is mitigated by COL’s solid margins and strong cash flow generation which were typically deployed towards share repurc

• [By Katie Spence]

  Boeing's not the only one to benefit
  In addition to the good news for Boeing, partners on the Dreamliner are also probably breathing a sigh of relief. Rockwell Collins (NYSE: COL  ) and General Electric (NYSE: GE  ) , both have a stake in the Dreamliner's success -- Rockwell supplies avionics equipment for the 787 and is expecting to increase production from four planes to 10 by the start of its fourth quarter, and GE supplies engines for the 787. �

Top 10 Defense Companies To Own For 2014: US Global Nanospace Inc (USGA)

US Global Nanospace, Inc. (USGN), incorporated in 1984, is a development-stage company that specializes in identifying, developing and commercializing advanced products the core technologies of which are primarily wide area perimeter security based or nanoscience derived. Its primary products include an integrated system to direct autonomous response featuring software and control elements, and biological and chemical decontaminants. Other products include optimized polymer and organic materials and nanofibers, advanced filtration systems for air, water and cigarettes, and blast mitigation and fire protection materials. It is focusing on obtaining global partners and/or licensees and marketing the products that it has developed for defense, security, and health and safety applications. The Company's customers for these systems, materials, formulas and processes include agencies or organizations under the direct control of the federal government of the United States, plus domestic and foreign businesses and foreign government agencies or organizations, to the extent permitted by applicable law or regulations.

MAPSANDS

The Modular Autonomous Perimeter Security and Non-Lethal Defense System (MAPSANDS) is a new product in wide area perimeter security. USGN designed MAPSANDS to address the need for autonomous wide-area perimeter security and access denial for sovereign borders, oil/gas/water pipelines, power plants, seaports, ships, airports, oil and gas refineries, water treatment and desalinization facilities, offshore oil rigs and other high-value infrastructure. Unlike other wide area security systems, MAPSANDS eliminates the need for fences, manned control and dispatch, and response teams.

MAPSANDS is designed to automatically protect and defend high-value remote installations with or without human intervention, eliminating the issues of inadequate manpower or misplaced loyalty that have plagued existing wide-area security endeavors. MAPSANDS incorporates advance! d radars capable of detecting, tracking and targeting to aim directional acoustic devices delivering clear verbal warnings and aversive warning tones to area perimeter intruders. These acoustic devices are designed to operate ranges, which enable to determine an approaching intruder's intent and affect the intruder's behavior. In the event an area perimeter intruder fails to heed the increasingly threatening acoustic warnings delivered by MAPSANDS, the system can be programmed to autonomously target and disperse non-lethal deterrent munitions, such as flash bang, tear gas, malodorants, or rubber pellets to establish a pre-set area denial perimeter.

MAPSANDS is designed to automatically protect and defend high-value remote installations with or without human intervention, eliminating the issues of inadequate manpower or misplaced loyalty that have plagued existing wide-area security endeavors. MAPSANDS incorporates advanced radars capable of detecting, tracking and targeting to aim directional acoustic devices delivering clear verbal warnings and aversive warning tones to area perimeter intruders. A variety of advanced tactical options are available based on customer specifications and rules of engagement.

ALL-CLEAR

All-Clear is designed for the neutralization of chemical and biological weapons and contaminants, and for general disinfection and sterilization of surfaces. All-Clear was designed for military decontamination applications, as well as for use by fire/emergency personnel, law enforcement agencies, or other first responders to terrorist, hazardous materials (HAZMAT), or other emergency incidents. All-Clear is a decontaminant that enables to eliminate chemical and biological warfare agents, such as Sarin and Anthrax. The foam is developed to neutralize agents without the harmful effects that most chlorine and oxidizing decontamination agents have on sensitive apparatus like landing gear and brake assemblies. Unlike other decontamination products that rely o! n chemica! l reactions to oxidize agents All-Clear uses an enzyme to selectively destroy nerve agents and a biocide mixture to sterilize biological agents, including anthrax spores.

All-Clear has been developed pursuant to the agreement with Kidde Fire Fighting, Inc. and is being marketed internationally to foreign governments, militaries and companies and has been presented to the United States Department of Homeland Security and the United States Department of Defense. All-Clear has passed the Boeing Series D6-17487, Revision P, corrosion test for use of foam on aircraft exteriors.

Radome and Radomex Impact Resistant Aircraft Radome

USGN developed radomes, a protective fairing typically found on aircraft that is used to protect radar antenna, that are designed to allow radar signal transmission. A fairing is a structure whose primary function is to produce a smooth outline and to reduce drag, for example, as on an airplane. This product is available in limited quantities. The Company is supplying a standard composite radome for the Bell 212/412 and the Agusta AB212/412 series military and commercial helicopters to Agusta Aerospace and Bell Helicopter. In addition, it has developed materials suitable for producing an impact resistantallistic resistant radome (RadomeX). RadomeX is designed to provide variable threat ballistic protection to the flight crew, the radar equipment and the aircraft while allowing the radar to operate. RadomeX products are under development.

NanoFilterCX

NanoFilterCX is a cigarette filter. NanoFilterCX is designed to provide nanofiber-based, high-efficiency mechanical filtration for reduction of cigarette smoke toxins. In addition to the direct benefit to smokers of reducing toxins, the NanoFilterCX will be manufactured from a variety of polymers to optimize design and production requirements. The NanoFilterCX is still under development.

Nanofilter Pathogen/Allergen Air Filter Purification Systems

The core! of USGN's NanoFilter technology was initially developed for NASA for use during extended crewed space flight applications lasting in excess of 120 days, to provide ultra-fine particulate matter air filtration and purification. The Nanofilter is comprised of advanced polymeric nanofiber combined with a patented particle stimulation mechanism.

The result is an optimized porous nanofilter media that is enveloped with an electronic field causing the airborne particulate matter to move in a churning motion perpendicular to the airflow direction without ionization, thus enhancing the London/Van der Waals force interaction (a type of particle attraction), resulting in an air filtration and purification system to capture bacteria, viruses, smoke, dust, odorants, and other sub-micron sized particulate matter. The three products: GARDS-Guardian Antiballistic Replacement Door Skins, SAV-A GUNNER (SAG) HMMWV Turret, and BLAST-X are not being marketed.

Gards -Guardian Antiballistic Replacement Door Skins

The Guardian Antiballistic Replacement Door Skin (GARDS) for the AM General High Mobility Multipurpose Wheeled Vehicle (HMMWV) are lightweight and flexible antiballistic panels designed to protect vehicle occupants in elevated-threat locations. GARDS are designed to be attached in the field to the interior of the existing HMMWV doorframe, upgrading threat level protection to NIJ Level IIIA or higher, providing for an increase in protection from small arms fire, projectiles, fragmentation and shrapnel when compared to the original equipment fabric doors. GARDS are designed to be installed in 15 minutes. They weigh as little as six pounds per panel, require no maintenance and as the original door structure and canvas cover remain intact, are intended to be unnoticeable from the outside of the vehicle. GARDS' strength, durability and low weight is a result of its G-Lam, anti-ballistic material. G-Lam is created with a process that results in mechanical properties. GARDS are desig! ned to pr! ovide protection against specific ballistic threats, fragmentation and shrapnel. G-Lam is also designed to be impervious to petroleum distillates and maintain performance at temperatures in excess of 400 degrees fahrenheit.

Sav-A Gunner (Sag) HMMWV Turret

The S.A.G. Turret has been designed as a durable, lightweight shielded turret offering protection against specific ballistic threats, fragmentation and shrapnel for the HMMWV. The S.A.G. Turret weighs approximately 160 pounds and offers rapid rotational capability. The S.A.G. Turret is approximately four feet in diameter, is designed to interface precisely with military HMMWV rotating turret rings and is designed to be installed by two people in less than one hour using common hand tools. USGN's G-Lam material used in the turret is designed to be impervious to petroleum distillates and to maintain performance at temperatures in excess of 400 degrees fahrenheit.

Blast-X Explosion Mitigation Material

Blast-X is a lightweight blast mitigation material that may be manufactured in various mediums, including flat panels, conformable panels, and cast shapes. Blast-X integrates blast mitigation and containment technologies into a single unit or system of products that are designed to reduce risk to persons and property, preserve forensic evidence, increase safety in work environments, and prevent sympathetic detonation in munitions containers. Sympathetic detonation is the detonation of one explosive item by exploding another explosive item adjacent to it.

Blast-X is comprised of two distinct components: a mitigation medium to attenuate explosive shock waves, reduce initial shock pressure levels and minimize fire as it interacts with the heat and pressure of the blast environment, and a back panel made of USGN's G-Lam anti-ballistic/anti-fragment material to contain blast fragments and debris. Blast-Cast is a castable blast mitigation product designed for munitions containers, munitions storage f! acilities! , and any application where blast mitigation and more specifically sympathetic detonations are a concern. Blast-Cast is a custom manufactured solution that can be molded into myriad forms, in accordance with the customer's specifications. The components in Blast-X can also be used separately or spaced, depending on the definition of threat while considering new construction or retrofits. The blast mitigation portion of Blast-X is more appropriately placed as near as possible to the blast source, while the fragment barrier portion can be placed closer to the areas that are to be protected (such as occupied rooms and critical equipment).

Top 10 Defense Companies To Own For 2014: Spirit Aerosystems Holdings Inc.(SPR)

Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs), as well as offers related spares, and maintenance, repair, and overhaul (MRO) services. This segment also offers rotorcraft comprising forward cockpit and cabin for military aircrafts. The Propulsion Systems segment engages in the development, production, and marketing of struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as provides related spares and MRO services. The Wing Systems segment develops, produces, and markets wings and wing components comprising flight control surfaces and other miscellaneous structural parts primarily to aircraft OEMs, as well as offers related spares and MRO services. This segment is also involved in designing, engineering, and manufacturing structural components for military aircrafts, including low observables that are radar absorbent and translucent materials; and radome new builds and refurbishment. It also provides other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. Spirit AeroSystems Holdings, Inc. serves large commercial airplanes, business and regional jets, and military/helicopter sectors of the aerostructures industry. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. is headquartered in Wichita, Kansas.

Advisors' Opinion:

• [By Michael J. Carr]

  Einhorn added RAD to his portfolio in the second quarter of 2013, the last quarter we have a full report of his activity for. During that time, he was also buying Spirit AeroSystems Holdings (NYSE: SPR).

• [By Michael Cintolo]

  Spirit AeroSystems (SPR) is a dominant supplier of aerostructures (fuselages, wing systems, etc.) to both Boeing and Airbus��n fact, it makes 70% of the airframe content for the Boeing 737, and is the largest aerostructure provider to Boeing's newer 787.

• [By Inyoung Hwang]

  Axel Springer AG (SPR) declined 1.5 percent to 43.43 euros. Goldman Sachs Group Inc. cut its rating on Europe�� biggest newspaper publisher to sell from neutral, saying its valuation is the highest of the publishers it covers. Shares trade at 18.6 times earnings compared with 16.3 times for the DAX.

• [By Ben Levisohn]

  Shares of Textron have gained 1.2% to $36.63 at 1:09 p.m., while Embraer (ERJ) has risen 0.5% to $32.30, Triumph Group (TGI) has advanced 0.2% to $75.73 and Spirit AeroSystems (SPR) is off 0.8% at $33.90.

Top 10 Defense Companies To Own 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 Dividend Growth Investor]

  The company�� last dividend increase was in September 2013 when the Board of Directors approved a 15.60 % increase in the quarterly dividend to $1.33� per share. The company�� peer group includes Raytheon (RTN), General Dynamics (GD), Northtrop Grumman (NOC) and Boeing (BA).

• [By Rich Smith]

  One of the bigger winners in the race to land contracts yesterday was Raytheon (NYSE: RTN  ) , which came away with two contract wins worth a combined $58.1 million -- about 9% of the total.

• [By Jon C. Ogg]

  Raytheon Co. (NYSE: RTN) is down 2.2% at $75.33 in late Tuesday trading against a 52-week trading range of $52.24 to $77.93. According to Thomson Reuters, its consensus analyst target is $74.63 and the highest target is $91.00. Its media price target is above the consensus at $77 but that still doesn’t leave much room for implied upside.

Top 10 Defense Companies To Own For 2014: US Global Nanospace Inc (USGA.PK)

US Global Nanospace, Inc. (USGN), incorporated in 1984, is a development-stage company that specializes in identifying, developing and commercializing advanced products the core technologies of which are primarily wide area perimeter security based or nanoscience derived. Its primary products include an integrated system to direct autonomous response featuring software and control elements, and biological and chemical decontaminants. Other products include optimized polymer and organic materials and nanofibers, advanced filtration systems for air, water and cigarettes, and blast mitigation and fire protection materials. It is focusing on obtaining global partners and/or licensees and marketing the products that it has developed for defense, security, and health and safety applications. The Company's customers for these systems, materials, formulas and processes include agencies or organizations under the direct control of the federal government of the United States, plu s domestic and foreign businesses and foreign government agencies or organizations, to the extent permitted by applicable law or regulations.

MAPSANDS

The Modular Autonomous Perimeter Security and Non-Lethal Defense System (MAPSANDS) is a new product in wide area perimeter security. USGN designed MAPSANDS to address the need for autonomous wide-area perimeter security and access denial for sovereign borders, oil/gas/water pipelines, power plants, seaports, ships, airports, oil and gas refineries, water treatment and desalinization facilities, offshore oil rigs and other high-value infrastructure. Unlike other wide area security systems, MAPSANDS eliminates the need for fences, manned control and dispatch, and response teams.

MAPSANDS is designed to automatically protect and defend high-value remote installations with or without human intervention, eliminating the issues of inadequate manpower or misplaced loyalty that have plagued exist ing wide-area security endeavors. MAPSANDS incorporates ad! va! nced radars capable of detecting, tracking and targeting to aim directional acoustic devices delivering clear verbal warnings and aversive warning tones to area perimeter intruders. These acoustic devices are designed to operate ranges, which enable to determine an approaching intruder's intent and affect the intruder's behavior. In the event an area perimeter intruder fails to heed the increasingly threatening acoustic warnings delivered by MAPSANDS, the system can be programmed to autonomously target and disperse non-lethal deterrent munitions, such as flash bang, tear gas, malodorants, or rubber pellets to establish a pre-set area denial perimeter.

MAPSANDS is designed to automatically protect and defend high-value remote installations with or without human intervention, eliminating the issues of inadequate manpower or misplaced loyalty that have plagued existing wide-area security endeavors. MAPSANDS incorporates advanced radars capable of detecting, trackin g and targeting to aim directional acoustic devices delivering clear verbal warnings and aversive warning tones to area perimeter intruders. A variety of advanced tactical options are available based on customer specifications and rules of engagement.

ALL-CLEAR

All-Clear is designed for the neutralization of chemical and biological weapons and contaminants, and for general disinfection and sterilization of surfaces. All-Clear was designed for military decontamination applications, as well as for use by fire/emergency personnel, law enforcement agencies, or other first responders to terrorist, hazardous materials (HAZMAT), or other emergency incidents. All-Clear is a decontaminant that enables to eliminate chemical and biological warfare agents, such as Sarin and Anthrax. The foam is developed to neutralize agents without the harmful effects that most chlorine and oxidizing decontamination agents have on sensitive apparatus like landing gear and brak e assemblies. Unlike other decontamination products th! at rel! y! on chem! ical reactions to oxidize agents All-Clear uses an enzyme to selectively destroy nerve agents and a biocide mixture to sterilize biological agents, including anthrax spores.

All-Clear has been developed pursuant to the agreement with Kidde Fire Fighting, Inc. and is being marketed internationally to foreign governments, militaries and companies and has been presented to the United States Department of Homeland Security and the United States Department of Defense. All-Clear has passed the Boeing Series D6-17487, Revision P, corrosion test for use of foam on aircraft exteriors.

Radome and Radomex Impact Resistant Aircraft Radome

USGN developed radomes, a protective fairing typically found on aircraft that is used to protect radar antenna, that are designed to allow radar signal transmission. A fairing is a structure whose primary function is to produce a smooth outline and to reduce drag, for example, as on an airplane. This product is av ailable in limited quantities. The Company is supplying a standard composite radome for the Bell 212/412 and the Agusta AB212/412 series military and commercial helicopters to Agusta Aerospace and Bell Helicopter. In addition, it has developed materials suitable for producing an impact resistantballistic resistant radome (RadomeX). RadomeX is designed to provide variable threat ballistic protection to the flight crew, the radar equipment and the aircraft while allowing the radar to operate. RadomeX products are under development.

NanoFilterCX

NanoFilterCX is a cigarette filter. NanoFilterCX is designed to provide nanofiber-based, high-efficiency mechanical filtration for reduction of cigarette smoke toxins. In addition to the direct benefit to smokers of reducing toxins, the NanoFilterCX will be manufactured from a variety of polymers to optimize design and production requirements. The NanoFilterCX is still under development.

Nanofilte r Pathogen/Allergen Air Filter Purification Syste! ms

!

The ! core of USGN's NanoFilter technology was initially developed for NASA for use during extended crewed space flight applications lasting in excess of 120 days, to provide ultra-fine particulate matter air filtration and purification. The Nanofilter is comprised of advanced polymeric nanofiber combined with a patented particle stimulation mechanism.

The result is an optimized porous nanofilter media that is enveloped with an electronic field causing the airborne particulate matter to move in a churning motion perpendicular to the airflow direction without ionization, thus enhancing the London/Van der Waals force interaction (a type of particle attraction), resulting in an air filtration and purification system to capture bacteria, viruses, smoke, dust, odorants, and other sub-micron sized particulate matter. The three products: GARDS-Guardian Antiballistic Replacement Door Skins, SAV-A GUNNER (SAG) HMMWV Turret, and BLAST-X are not being marketed.

Gard s -Guardian Antiballistic Replacement Door Skins

The Guardian Antiballistic Replacement Door Skin (GARDS) for the AM General High Mobility Multipurpose Wheeled Vehicle (HMMWV) are lightweight and flexible antiballistic panels designed to protect vehicle occupants in elevated-threat locations. GARDS are designed to be attached in the field to the interior of the existing HMMWV doorframe, upgrading threat level protection to NIJ Level IIIA or higher, providing for an increase in protection from small arms fire, projectiles, fragmentation and shrapnel when compared to the original equipment fabric doors. GARDS are designed to be installed in 15 minutes. They weigh as little as six pounds per panel, require no maintenance and as the original door structure and canvas cover remain intact, are intended to be unnoticeable from the outside of the vehicle. GARDS' strength, durability and low weight is a result of its G-Lam, anti-ballistic material. G-Lam is created with a process that results in mechanical propert! ies. GARD! S are d! esigned t! o provide protection against specific ballistic threats, fragmentation and shrapnel. G-Lam is also designed to be impervious to petroleum distillates and maintain performance at temperatures in excess of 400 degrees fahrenheit.

Sav-A Gunner (Sag) HMMWV Turret

The S.A.G. Turret has been designed as a durable, lightweight shielded turret offering protection against specific ballistic threats, fragmentation and shrapnel for the HMMWV. The S.A.G. Turret weighs approximately 160 pounds and offers rapid rotational capability. The S.A.G. Turret is approximately four feet in diameter, is designed to interface precisely with military HMMWV rotating turret rings and is designed to be installed by two people in less than one hour using common hand tools. USGN's G-Lam material used in the turret is designed to be impervious to petroleum distillates and to maintain performance at temperatures in excess of 400 degrees fahrenheit.

Blast-X Explosion Mi tigation Material

Blast-X is a lightweight blast mitigation material that may be manufactured in various mediums, including flat panels, conformable panels, and cast shapes. Blast-X integrates blast mitigation and containment technologies into a single unit or system of products that are designed to reduce risk to persons and property, preserve forensic evidence, increase safety in work environments, and prevent sympathetic detonation in munitions containers. Sympathetic detonation is the detonation of one explosive item by exploding another explosive item adjacent to it.

Blast-X is comprised of two distinct components: a mitigation medium to attenuate explosive shock waves, reduce initial shock pressure levels and minimize fire as it interacts with the heat and pressure of the blast environment, and a back panel made of USGN's G-Lam anti-ballistic/anti-fragment material to contain blast fragments and debris. Blast-Cast is a castable blast mitigatio n product designed for munitions conta! iners, mu! nitions stora! ge facili! ties, and any application where blast mitigation and more specifically sympathetic detonations are a concern. Blast-Cast is a custom manufactured solution that can be molded into myriad forms, in accordance with the customer's specifications. The components in Blast-X can also be used separately or spaced, depending on the definition of threat while considering new construction or retrofits. The blast mitigation portion of Blast-X is more appropriately placed as near as possible to the blast source, while the fragment barrier portion can be placed closer to the areas that are to be protected (such as occupied rooms and critical equipment).

Top 10 Defense Companies To Own 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 Ben Levisohn]

  Caterpillar’s 2% gain has trumped the Dow Jones Industrial Average’s 0.04% rise, and United Technology’s (UTX) 0.1% drop, while competitor Deere (DE) has gained 1.9% to $83.22.

• [By Rich Smith]

  With a stock price that's up 0.8% after Wednesday trading, Hartford, Conn.-based United Technologies (NYSE: UTX  ) looks bulletproof today. Helping it get that way is a new contract that UTC subsidiary LifePort just won from the U.S. Air Force.