|From: leigh aulper||3/27/2013 11:19:54 AM|
| Stocks to Buy: Huge Growth for a Bargain Price |
Tim Melvin, Contributing Writer - March 26, 2013
Some of the most exciting stocks to buy are those with impressive growth potential.
Companies that are able to grow earnings for a long period of time can often see their stock prices soar for years, creating tremendous wealth for shareholders. Stocks to Buy: Huge Growth for a Bargain Price
Unfortunately, much of what passes for growth stock investing today is really momentum investing in disguise. Today's growth stock investors all tend to own and trade the same really popular companies that have already experienced significant price appreciation.
While it may be exciting to share cocktail party chatter with friends about the shares of Apple Inc. (Nasdaq: AAPL) or Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR), odds are that the real growth and profit opportunity has passed.
It makes more sense for growth investors to look for stocks of companies that have been growing sales and earnings at a consistently high rate, but are off Wall Street's radar. Companies that have very high rates of institutional ownership and lots of analyst coverage from the major firms are more than likely fully priced. All the growth potential is well defined and everyone already owns the stock.
The big rally moves in growth stocks come when the institutional money discovers the company and intense buying pressure develops as they all pile into the stock, pushing prices dramatically higher.
One such company that fits the bill now is CPI Aerostructures Inc. (NYSEAMEX: CVU).
Stocks to Buy: CPI Aerostructures (NYSEAMEX: CVU) CPI Aerostructures builds structural components for military and commercial aircraft as a subcontractor.
CPI has been off Wall Street's radar screen; in fact, some investors have been selling, afraid the sequester would hurt the share price.
What many are overlooking is that this company has been growing at an impressive pace. Sales and earnings have both averaged increases of over 30% for the past five years. In the most recent quarter, the company reported record sales and profits for the quarter and the full year.
CPI Aerostructures has acknowledged that the sequester may cause growth to slow in 2013, but beyond that the company is well positioned to regain a strong growth track.
The company has a $392 million backlog and a strong bid pipeline. Many of its military programs such as the Hawkeye Surveillance aircraft and UH 60M Blackhawk are not expected to be effected by the projected cutbacks in military spending. Commercial markets are recovering quickly and new demand is starting to emerge for next generation business jets such as the Gulfstream G60 and Cessna Citation X where the company already has subcontractor status.
While 2014 may show some weakness the expectations are that this company will recover its plus-30% earnings growth rate after that.
But, here is what Wall Street is really missing about CPI Aerostructures...
As institutional investors have abandoned the stock over sequester and defense budget concerns, they have pushed it down to such a bargain price that the company could be liquidated at a small profit. The company balance sheet shows $119 million of short-term assets including $2.7 million of cash and a little over $116 million in receivables. When you consider that the receivables are large established commercial aviation firms and government contractors, they are as good as cash.
CPI has a total of $44.2 million of liabilities and debts. That leaves a net current liquidation value of about $75 million and the market cap of the stock is just over $71 million. This calculation does not include about $4 million of computers, trucks, cars and other machinery owned by the company.
Wall Street's narrow focus has created an incredible bargain in a growth stock that is experiencing a very short-term pause in its high rate of sales and profit expansion. CPI has been profitable nine of the last 10 years, and every year since 2006. Earnings may slip back to $1 a share in 2013, but that should begin growing rapidly again in 2014 to over $1.20.
The stock is trading at less than nine times earnings in spite of excellent corporate performance and profitability.
When Wall Street discovers the mistake it has made, institutional investors will flock back to these shares and the buying pressure should push prices markedly higher. Shares traded hands at twice the current price a year ago, and CPI Aerostructures could recover much of that ground late in 2013.
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|From: Paul Lee||11/16/2015 11:06:33 AM|
Will Northrop Grumman Corporation E-2D Advanced Hawkeye Nullify $80 Billion Bomber Halt News?
Published by Sam Hason on November 14, 2015 at 7:33 am EST
Northrop stock has been under pressure since its $80 billion order was halted due to Boeing and Lockheed protest
According to a Reuters report, Northrop Grumman Corporation's ( NYSE:NOC) forecasted E-2D Advanced Hawkeye airborne early warning aircraft will receive orders from North Africa, the Gulf and Asia in the near term. The company recently lost a UAE order, to SAAB AB, worth $1.27 billion, for surveillance systems up-gradation on bombardier planes. Northrop claims to have an order for four E-2D aircraft already placed by Japan.
$80 billion order under scrutiny On November 12, the company's $80 billion order of long-range strike bombers awarded on October 27 by the US Air Force was halted. The contract was protested by Lockheed Martin Corporation (NYSE:LMT) and Boeing Co (NYSE:BA) saying the selection process was fundamentally flawed.
100 aircraft were to be developed and manufactured under the deal. The government was expecting the first fleet to be incorporated in 2025. The need for radar evading aircraft arose due to the Pentagon’s effort to ready US military systems against potential aggression from China and Russia.
On November 6, Boeing and Lockheed filed an official protest against the deal, saying there were flaws in the Pentagon’s evaluation process, those that could derail the Defense Department’s extensive efforts to making weapons less expensive.
The US Government Accountability Office stated that the ruling on the protest will take place on February 16, 2016.
JP2068 Computer Network Defense contract received There was also positive news for the company, coming from its subsidiary, the “Northrop Grumman M5 Network Security,” which received a contract for the JP2068 Phase 2B.2 from the Australian Department of Defense.
This subsidiary is involved in providing cyber-security services to government organizations, military, and large-scale corporations. M5 also maintains a flourishing product development practice, which focuses on the Secure Communications System, and an array of cyber-secure products and capabilities.
The award for the JP2068 will enable effective management at the defense department’s, with monitoring, as well as the security of communication networks and information systems through its multi-phased project.
Northrop Grumman Australia chief executive Ian Irving said, "This contract marks the formalization of a partnership between Defense and Northrop Grumman Australia as a trusted cyber systems integrator with the ability to deliver enhanced cyber security to Defense."
Business Finance News believes despite Northrop's past, the company developed better aircraft. Naturally, before having allocated the second largest weapons program, the Department of Defense must carefully considered multiple factors due to sensitivity. The award also opened the Pentagon’s doors for Northrop, which should be seen as a positive sign in an environment where military spending has slowed. It is yet to be seen whether the company will adhere to the development agenda.
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|From: Paul Lee||11/6/2017 8:39:34 AM|
|CPI Aero Awarded $15.8 Million Multi-Year Contract by Lockheed Martin for F-35 Canopy Drive Shaft Assemblies|
GlobeNewswire•November 6, 2017
EDGEWOOD, N.Y., Nov. 06, 2017 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American:CVU) today announced that it has been awarded a $15.8 million multi-year contract by Lockheed Martin Company ( LMT) to manufacture canopy actuation drive shaft assemblies for the F-35 Lightning II, the world’s most advanced multirole fighter.
Under this new contract with Lockheed Martin’s Aeronautics division based in Fort Worth, TX, CPI Aero will provide four different drive shaft assemblies used within the actuation system that opens and closes the cockpit canopy of all three variants of the aircraft: the F-35A conventional takeoff and landing (CTOL) variant, the F-35B short takeoff/vertical landing (STOVL) variant, and the F-35C carrier variant (CV). Deliveries are expected to begin during the third quarter of 2018 and continue through December 31, 2022.
This is CPI Aero’s second contract with Lockheed Martin for structural assemblies on the F-35. In May 2017, CPI Aero made its first delivery of lock assemblies for the arresting gear door of the F-35A CTOL variant under a multi-year contract awarded in 2015 estimated at up to $10.6 million.
The F-35 Lightning II is a family of single-seat, single-engine, all-weather stealth multirole fighters designed to perform ground attack, aerial reconnaissance, and air defense missions. The US Department of Defense plans to acquire over 2,400 F-35’s by 2034 and eleven other countries also have plans to acquire the aircraft.
Douglas McCrosson, President and CEO of CPI Aero, stated, “This is an important win for CPI Aero as it increases CPI Aero content on the F-35, our nation’s largest military aircraft program, and further strengthens our ties to Lockheed, the largest defense prime contractor in the world. Coming on the heels of our first F-35 assembly delivery, I am confident that Lockheed Martin views us as having attributes that define successful defense contracting: quality, performance and affordability.”
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