L-3 Communications Holdings, Inc. (NYSE:LLL)

CAPS Rating: 4 out of 5

The Company is a prime system contractor in aircraft modernization and maintenance, Command, Control, Communications, Intelligence, Surveillance and Reconnaissance systems and government services. Also supplies high technology products and systems.

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Player Avatar JBouchard (98.34) Submitted: 4/20/2012 8:22:22 AM : Outperform Start Price: $67.22 LLL Score: +7.38

Long-term contratian pick. Current Graham price is $115 (based on $8.77 earnings and $67 book value), compared to current price below $70, so that's a 40% margin of safety. Get a nice $2 dividend every year (2.9% yield) while waiting.Currently depressed because of military spending cuts in the U.S. and elsewhere, but this won't last forever so it seems like a good opportunity to add this while prices are depressed. Existing aircraft will still need to be maintained and upgraded.

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