Jim “The Net Fool” asked:


In a shaky stock market environment, there is no better place to turn than the defense contractors. Leading the S&P index by about 20% in 2008 (the 8th straight year of better relative performance), the so-called “big five” have their work cut out for them in 2008 and beyond. It is pretty much a foregone conclusion that defense spending will increase this year.

With high global threat levels, the United States defense budget has historically increased regardless of the presidential party in power. Don’t listen to the fools that tell you a democrat president will cut the defense budget, that is simply not true. The funding put into homeland security as well as our defense budget is set to increase (President Bush recently introduced a $3.1 trillion dollar budget) regardless of the War on Terror’s outcome, and the big five defense firms are set to benefit.

There are pros and cons to each of the main defense contractors, but I want to defend the notion that they are all winners in this environment. Which companies? I am talking about United Technologies, Lockheed Martin, General Dynamics, Raytheon and Northrop-Grumman.

United Technologies (NYSE: UTX)

UTX is the largest of the Defense companies, and offers a favorable mix of risk-reward at this point. A widely expected healthy first quarter could be a huge catalyst for the rest of the year. United Technologies does everything from industrial turbine engines to elevators, and it is this diversity that really makes them the General Electric of defense contractors. The weak dollar actually bolsters a potential earnings beat (+15%) for 2008, despite a rocky economy, because European sales account for about 25% of United Technologies’ total.

Many investors have voiced concern over the recent announcement to acquire Diebold. I believe that speculation since the bid isn’t likely to be hostile and the relative size of the expense is small on UTX’s books. Other potential risks include a weakening in commercial construction markets and a slowing residential construction recovery, but I think that a strong aerospace backlog along with a geographic diversity balances their resume enough to ensure a strong year under even the worst conditions.

Lockheed Martin (NYSE: LMT)

Lockheed Martin is the kind of company that never gives you the value you want, but always performs with off the charts fundamentals and margins. I think a lot of analysts with HOLD ratings on the firm are underestimating LMT’s ability to drive profit out of even the bleakest of market conditions. This company has the most risk behind a 2009 administration changeover, but the threat posed is hyped beyond what will actually happen in my honest opinion.

Truth be told, I’d rather have you in a different defense contractor in the short term, but LMT’s performance is truly remarkable and I still have a BUY on these perennial EPS outperformers. They were up 32.8% during the last 2001 recession, and are poised to outperform the market again in 2008. What’s more, their 10-year annualized return is up at 7.3%. What I am trying to say is, Lockheed Martin is historically one of the top performers in a recession, and this go-round shouldn’t be any different.

General Dynamics (NYSE: GD)

General Dynamics is poised to be the largest holding in the Nittany Lion Fund, LLC., and I am generally stoked about their prospects for the year. GD has a leading market position in the areas essential to the U.S. military and has a strong track record of generating capital under every market condition imaginable.

The new Gulfstream G650 aircraft, from the leading unit of GD Aerospace, has really improved on fuel efficiency and speed (among other things) and I feel like the long-awaited release could really benefit sales. This is pretty much the world to GD, and offers a huge amount of visibility with low risk. Other than this, I continue to recommend General Dynamics because of their “no surprises” business model that continues to perform well, offering beatable 2008 EPS guidance and great long term prospects, that guarantees a safe investment.

Raytheon (NYSE: RTN)

RTN is really a conviction buy in the fact that they have an increasing foreign exposure, above average cash flow and a recession-proof portfolio. A lot of investors have Raytheon as the #1 defense company stock for 2008, and I really can’t argue with them. I do not like the fact that this company is overly tied to the Bush Administration, and would be effected slightly by a reduced US presence in Iraq or a more pro-China President (because of arms supplies to Taiwan). However, you need to consider that the defense budget is relatively stable.

Raytheon is set to benefit from some big contracts in homeland and border security, such as a $5+ billion Saudi middle east border contract and the ability to capitalize on cyber security after acquiring Oakley. Strong foreign orders and redeployment of cash should drive Raytheon into a profitable 2008/2009, and I stand by the hype.

Northrop-Grumman (NYSE: NOC)

All the buzz over Northrop-Grumman has been the contract win over Boeing to supply a new tanker worth a potential $35 billion. Despite Boeing’s dispute, NOC will more than likely come out with the win on this one. Regardless, I feel that the bigger development is Northrop’s “Guardian System,” a missile-jamming “pod” that can be attached to aircraft to prevent them from getting shot down in hostile flight areas. Before this system was released on March 26th, it was widely expected to favor Raytheon and BAE Systems… I think this can be a huge driver for NOC that has really gone unnoticed in the market.

Northrop is a steady performer at an attractive price. With a PEG at 0.88 and a Beta at just 0.38, they seem to be ripe for investment. Not only are the valued well, but they have that low debt that we love (debt/equity is just 0.23). The numbers are good, they are getting contracts nobody thought they would get, and they carry low risk in a poor market environment. NOC is good.

The power behind defense in a down market is the ability to lock in contracts, backed by a rising national defense budget, for the long term. The big five all have their advantages, and I would expect most of them to capitalize regardless of what twists and turns are in store for the rest of the market. Sometimes, the best offense is a good defense!

-The Net Fool



Gail

Brian Hickie asked:


Maybe this is your third speeding ticket this month, and your driver’s license is about two points away from being revoked or you have been in your fifth accident in five years (only two of those were actually judged to be your fault). Whatever your driving history is, you may need to evaluate your car insurance again, and find out whether or not there are other options for you.

The problem with being a bad driver (or just an unlucky driver) is that if you lose your driver’s license, your car insurance company is probably going to drop your coverage. If you get dropped, and then get your license back after a while, you are going to find out that it is difficult to find cheap car insurance. You can get as many car insurance quotes as you want; you are going to end up paying a lot of money for insurance.

So how do you find a good car insurance if you aren’t too reliable of a driver? The best bet is to talk to several agents in person, and see what they can do for you. Sometimes, you may be able to take defensive driving courses or even the entire driver’s education course again in order to get a discount or reduce the number of points on your license. Any little bit helps, and you may find out that the money that you save monthly by taking a weekend course on driving from your car insurance company is going to save you money in just a couple of months (and maybe even make you a better driver).

No one wants to admit that they are a bad driver, or that they were at fault, but the key to getting cheap car insurance is to sometimes admit that you are not the world’s best driver. A lot of times, you can plead “guilty” to an offense and get reduced fines and penalties rather than pleading “innocent”, going through the whole legal procedures and then getting the full fines.

When filling out the paperwork to get a cheap car insurance quote, make sure that you tell the truth. Before the policy is issued, they are going to take a look at your driving record, and lying about how many accidents you have been in is going to just cause you trouble with the car insurance company.

The final tip to finding the best car insurance if you are a not-so-great driver is to get quotes from all sorts of car insurance agencies. You may think that you are stuck with car insurance from those who deal with high-risk drivers, but you may just be able to get a normal company to cover you. If you can get regular car insurance, you may be limited in options initially, but after awhile you should be able to find a cheap car insurance option.

Car insurance is one of those evils that we have to buy. Those who can’t get any car insurance at all are either a menace on the road or doomed to taking the bus. Driving safely and keeping your eyes on the road will eventually pay off by having cheaper car insurance.



Gabriel

Etienne A. Gibbs, MSW asked:


Spyware, Keyloggers, Hackers, Cyber Terrorists, Cybercriminals, Cybergangs, etc. These threats are real and the fact is your computer is most likely infected already! Cybercrime is on the rise. You may not be the only one using your computer. Hackers may be using your computers and you may not even know it. Would you ever know it if your computer were taken over and being used by a hacker? Not likely. When a hacker hijacks a computer, the victim rarely knows. A computer that has been hijacked is one that is completely taken over by a hacker, or a group of hackers, to be used for their own purposes. The idea is that the real owner of the computer never knows their system has been hijacked, so the hackers can secretly use it whenever and however they want.

One of the latest hacking trends is called “Drive-by Hacking”. Popular wireless Internet access points have now become a major target for hackers. Hackers simply take their laptop computers in their cars and drive through business parks or residential neighborhoods remotely scanning for open wireless networks. This is the latest version of the drive-by garage door remote theft where criminal would use universal remote controls to open garage doors without arousing the suspicions of neighbors, police, or home security companies.

Today millions of businesses and homes have implemented wireless networks for their convenience, and, sadly, for the convenience of the cybercriminals. And they don’t even have to open your garage door to enter your home or business.

Now hackers can simply pull up outside, up to 600 feet away, and gain access to the network, the Internet, and every computer on the network. This kind of hacking has become so popular that you can even find public websites around the globe that sell maps to all the known “open” wireless networks.

Once your computer has been hijacked, the hacker claims ownership of your computer and there is little you can do unless you protect your computer in advance against this threat. In fact, in many cases when hackers have taken over a computer, they will even “heal” the computer by closing the security holes, so no other hacker can break into the computer and use it too. (Can you imagine? Criminals protect their hijacked computers from other criminals.)

Computers that have been hijacked and are under the control of a hacker are known as “zombies”. Some of the more popular uses for a zombie computer include using it to send spam emails, distribute pornography, download illegal copies of software, and to anonymously attack another computer, a business, a website, or even a government agency.

There have been many cases in the U.S. and around the world where a business or home computer has been hijacked and used for illegal purposes without the computer owner’s knowledge. These victims have had their computers used to distribute child pornography, deface websites, and even hack into government computers. In many cases, the owner of the hijacked computer (the business owner or the homeowner) has been arrested and hauled off to jail, only to be humiliated, demoralized and even convicted for crimes they didn’t commit.

See ABC’s 20/02 video about an unsuspected 16 year-old high schooler who was arrested as a child pornographer after his pc was hijacked and used to distribute child pornography. Click this link: ABC News’ 20/20 video.

Hackers are very good at hiding behind their slave or zombie computers. A hijacked computer is a hacker’s protection of anonymity. As unbelievable as it may seem, hijacked computers, zombie computers actually have a street market value in the hacker community. The better the computer and the faster the Internet connection of the slave machine, and the bigger the hard drive, the more it is worth on the market. Zombie computers are often leased out by hackers to other hackers, or even to organized crime groups, to be used for illegal purposes – without the computer owner’s knowledge. If a hacker or a cybergang can take over a hundred or a thousand computers, they have an army of computers at their disposal.

Here are some facts:

* If your computer has become a “zombie” or a “slave” to a hacker, the use of your computer could be for sale somewhere on the Internet or an auction website. Your computer’s power is valuable to hackers.

* Today, there are organizations that claim “ownership” of more than 450,000 zombie computers around the world that they use to anonymously send spam.

The best defenses are a combination of education and managed protection service. Off-the-shelve individual or combined anti-spyware, antivirus, and anti-spam software programs may not be sufficient protection, because hackers seem to stay one step of these programs. The popular off-the-shelf products offer you no personalized support. If you want help, you’ll pay for it over and over again! If you need a virus removed with these cheap programs, you’ll pay for it. You may get technical support from your PC manufacturer for security problems, but in most cases, you probably will not. Even if you do, it will likely be for a fee, and one that repeats itself should you need additional help down the road.

Because hackers will likely always be one step ahead of the security industry itself, software-based protection alone is not enough. 85% of current anti-virus users have been infected with a virus or worm! Have you ever had a virus you couldn’t get rid of? Has your computer acted funny or has it slowed way down due to a massive spyware infestation? Does your computer have a virus, spyware, malware, or hacker hiding inside? Test it now to be sure. Go to www.SayNotoHackersandSpyware.com to take a free Internet security audit to determine which trojans and hacker spyware tools might be infecting your computers.

To protect yourself, you need an Internet security team of experts making sure that you, your family, and your business computer are always safe and secure. The best protection you can have in today’s rapidly changing world of cyber-attacks is to have expert support for all your Internet security needs that will provide technical support without any hassles and without charging you extra fees. It will become even more critical than it is today as time goes on. You need to find your own personal team of experts to rely on. If you ever have a security problem, you will want to have a trusted expert you can call for professional help, without any hassles and extra costs!



Benjamin

david.charle1 asked:


 

Motorbike insurance has become a sheer necessity due to considerable increase in the number of casualties. Are you worried about hefty cost of motorbike insurance? Saving money on auto insurance is no secret, but most of us don’t understand that it is equally applicable to motorbike insurance, as well. An inexpensive motorbike would mean low cost motorbike insurance, just like economy cars insurance costs lesser than luxury cars. Therefore, first thing to consider is to choose for a mid range bike, if you are a casual rider. Here, we are going to discuss some of the simplest things that you should always consider to find low cost motorbike insurance and enjoy safe ride.

 

Bundling more than one policy can save your ample money for example, you can go for home and auto insurance with the same company and enjoy amazing discounts. The best thing is it is applicable to motorbike insurance, as well. If you have ample sources then you should opt for higher deductibles, which is inversely proportion to lower premiums, irrespective to what you are insuring. This would significantly reduce the annual premium and you will feel less burdened.

 

You can store your bike in the garage, when idle and earn discounts on the motorbike insurance. Some other effective modes are joining a safe rider class or taking up a motorbike club for defensive driving. These are general behaviour and may not save much of your penny, but would definitely avoid any accident. This will reduce the chance of filing the claim. Never drive drunk, as maximum motorbike deaths comprise of a drunken rider. Make sure to update the bike, as well as the policy. For any sort of addition, make it a point to update your insurance agent. Always wear a helmet for safety and drive safe. For the most low cost motorbike insurance, search World Wide Web.



Minnie