Alliant Techsystems, Inc. (ATK)

Mad Money - Cramer Pick

p/e under 10

It's not gonna be a doubler or anything, but there should be an good increase at or around the next earnings report, and probably the next one too. How much depends on the rest of their business, but the consumer ammo market alone will carry them regardless.

It's not a long term bet, there's probably a good deal of hoarding on both the consumer and retailer ends which could hurt sales in the future, however wholesale ammo supplies are pathetic at best and have been for some time, just replenishing that will be good for another quarter (if not two). Add to the fact that the fact that they've ramped up production-and still fail to meet demands. And better yet ammo prices are where they were at a year or two ago when metals were all at historic highs means better margins. In addition they also have their hand in all sort of gun related accessory products (although that's not a huge part of their business, but it helps).

Again, how much depends on the rest of their business, but this is as close to a guaranteed win as it gets.

The debt load is ugly, but the stock has been beaten up too much lately.

Earnings play...

We always need bullets

If gun sales are up significantly, then bulk ammo inventories should be flying off the shelves... I also like the link to government spending, admittedly naively, since defense spending may decrease.

for the next 30 days only.

With the impending Obama win and the inevitable increase in government spending to follow, this company should continue to do well for at least the next several years.

ATK makes all the rifle bullets used by US forces in Iraq and Afghanistan. They also manufacture many larger munitions. As long as the US is engaged in armed conflict, ATK should do well.

Always need more weaponry.

backlogged contracts, superior and unique projectile products technologies

Carries a high debt and insider sells are telling. Watch out for accounting issues in the future as goodwill has never been written down despite paying premiums in M&A and a market that certainly would not favor buying these "assets" ATK is a poster child for cost plus over runs that McCain will eliminate thus the 40% load of these contracts currently giving ATK a tax payer slush fund bonanza will go away shortly. Currently over bought and being pumped continuously - watch for rotation out of the sector to really hurt. CEO and CFO have little experience and are grossly over paid.

This baby is coming off of a nice double bottom reversal at $100ish and is most likely going to recapture lost gains in the mid $120s and proceed to fit new highs before this summer is over. Say hello to investors looking to survive a recession this summer by jumping into the defense sector.

Testing a portfolio of companies that start with the letter "A".

With the war and all, ATK is a great pick since they furnish ammo and other WMDs to the Gov. As long as we're fighting, ATK is making money

Allied Technologies is a great play in the defense sector. They make the lead that go in the rounds our troops use. For all those people that are against the war you still need to look at this stock. We will be in Iraq and Afghanistan for years to come. That means this company will make profits and more profits.

Praise the Lord and pass the ammunition!

Government is buying lots of bullets, ATK is getting contracts and performing well on them.

Disclamer: I own no stocks in ATK, thinking of buying some. I work in the dense industry and the company I work for does have some business ties to ATK.