L-3 Communications Holdings, Inc. (LLL)

5 Star, Small Cap- pays dividend

yup five stars

Underpriced relative to near $5/sh earnings, great cash and cash flow, homeland security and intellegence markets. Should name CEO in next few weeks, beginning to get analyst upgrades. Wall street historical favorite with good past growth record, up 10+ % in last few weeks, with another 10% possible in next few weeks and 20 % by next March.

LLL has taken over some major privcons in Iraq

tremendous free cash, share buybacks,low earnings multiple and a decent dividend make this a very appealing stock (to me). Recently the GAO ruled in L-3's favor and although the army is not bound to the advisory ruling the army may renew some of the canceled contracts (there are 4bln worth). In the event that this does not happen not to worry the cancellations seem to already have factored in to the current price. Plus L-3 is signing many new contracts with the navy and army. INSIDER ACTIVITY- recently directors have made some substantial purchases.

Can you imagine a security/defense contractor not performing well in the current environment?

If you believe that the Global Terrorism is going to increase in the next decade (and that's what has been happening in the past decade) - then LLL is for you.

Major US Defense Contractor - if their is prolonged or additional US-involved conflicts - then LLL will stand to profit.

Fundamentals are good but not briliant:
PS - 0.83
Growing EPS - 1.47, 2.13, 2.62, 3.33 and 4.20
PEG:0.7

I'd prefer that global terrorism will wane, but living in this region (Israel) my personal experience is that whatever happens on my side of the world will end up happening elsewhere.

Consistent outperformer in defense, homeland defense, etc. sectors. Them towel heads ain't goin' away, even if we do.

morningstar screen

L-3 won the bid to outfit the Presidents oval office as well as much, if not all the white house. The specifics of the deal were presented an the past years aerospace and defense show, where the L-3 executives were presenting that the company had already won huge gov't contracts to keep them on a steady eye towards most analysts price points ranging from $90 to $100 .

I have worked for this company for over 10 years. Very rare that you see this stock trading in the $60 a share range. In my opinion we have more business right now than we did a year ago when the price per share was significantly higher. Consider getting in now and a 10-20% return is a very probable end result in the next few months.

LLL - L3 Communications - Full disclosure, I work for this company. Knowing a little insider-info, one thing I do know for sure is this company is rapidly growing and is very profitable. They are heavily dependent on US Defense spending so with an emergence of a democratic presidency in '08, they may not do quite as well in the past. The company is young, being founded in 1997, it has the ability to move quickly on new technologies so don't look for it to stay in a slow industry for too long. This will be a steady outperformer and it will be a long-term holding for the BIMCY30. - JB

Military defense budget is expanding as well as homeland security. New top management will succeed.

They are ripe for a buy out.

This company continues to work steadily in research in the homeland security sector, a steady source of funding historically and one that won't diminish even after an election that could unseat the base of power in Congress under Democratic leadership. The Democrats, over the next two years, will still support spending on Homeland Security funding to try to demonstrate that they care about the constituants.

This company is developing new and innovative technologies to detect explosives at public transportation terminals (remember, bus and train passenger screening in terminals is still a widely untapped market).

In addition, they have just been tapped by the military to provide specialized investigative resources to target insurgents equipped with materials and knowledge in the smuggling of components and manufacturing of improvised explosive devices.

This company, though stock prices are relatively high now, seems ready for a split, and is positioned much as Invision Technologies (INVN) was situated pre-9/11. INVN was purchased by GE within the last two years.

Good earnings.

Good solid company

L3 Communications is a great play in the defense sector. They make products that are more of an intelligence value than actual killing the enemy. They should really benefit if a Democrat gets elected President.

Consistent, quality products at affordable prices. This company stays near the front with its technology. While never investing enough in r&d to be first, they invest enough to be close in release dates and technology. This allows them to gain a large portion of the expiremental market, and to maximize profits because the market is already set.