Hot Defense Stocks To Watch For 2014

LONDON -- When the country's finest dividend investor took a swing at the U.K.'s greatest dividend behemoth, it caused quite a dust-up.

Seconds out!
In February, City legend Neil Woodford laid into�Vodafone� (LSE: VOD  ) (NASDAQ: VOD  ) , dropping his entire stake in a single swipe.

Last week, the Fool's own investment heavyweight, Maynard Paton, also joined battle, backing what he called "the most contentious sell decision in the market today."

Poor Vodafone. After years of sterling dividend service, it deserves better. Somebody should come to its defense. And here I am.

Woodford listed four reasons to sell Vodafone. Falling revenues in southern Europe, the decision to deny shareholders the Verizon Wireless dividend, concerns about data-service profits, and dividend cash flow cover falling to dangerous levels.

Woodford apparently sold Vodafone at 1.71 pounds. Earlier this week it traded at 1.90 pounds. Despite Woodford giving it his best shot, Vodafone is neither down nor out. In fact, it's risen up to 11% in four months.�

Hot Computer Hardware Stocks To Watch For 2015: Engility Holdings Inc (EGL)

Engility Holdings, Inc. (Engility), incorporated on November 18, 2011, is a provider of systems engineering services, training, program management, and operational support for the United States Government worldwide. The Company�� business is focused on providing a range of engineering, technical, analytical, advisory, training, logistics and support services. The Company operates in two segments: Professional Support Services and Mission Support Services. The Professional Support Services segment provides Systems Engineering and Technical Assistance (SETA) services, program management support and software engineering lifecycle sustainment and support services. Through its Mission Support Services segment, it provides capabilities, such as defense related training, education and support services, law enforcement training, national security infrastructure and institutional development. In July 2012, L-3 Communications Holdings, Inc. (L-3) completed the spin-off of its subsidiary, Engility. In January 2014, Engility Holdings Inc completed the acquisition of Dynamics Research Corp.

The SETA services that it provides are categorized under the United States Government Professional, Administrative and Management Support Services spending. The Company�� customers include the United States Department of Defense (DoD), the United States Department of Justice (DoJ), the United States Agency for International Development (USAID), the United States Department of State (DoS), Federal Aviation Administration (FAA), Department of Homeland Security (DHS), and allied foreign governments. During the year ended December 31, 2011, it had revenues of 98% of which was derived from its United States Government customers.

Professional Support Services

Engility�� SETA services include systems engineering and integration, including requirements development and traceability; test and evaluation; field testing and data analysis; modeling and simulation (M&S), and systems training solut! ions assessment, development and delivery. The Company provides services for a range of systems, including combat systems, health and welfare systems, information technology (IT) networks and depot-level maintenance, including counter-improvised explosive devices (IEDs). Engility has supported Developmental test and evaluation (DT&E) and Operational test and evaluation (OT&E) for a range of DoD, DHS, and FAA customers, performing a variety of tests, including in management, planning, execution, integration, formal systems, interoperability, regression, reporting, end-to-end testing, and combined test force/integrated test team/integrated process team support.

The Company�� field testing and data analysis business provides staff developing research reports, white papers, test plans, test reports, monthly status reports and inputs for technology data calls and presentation materials. Engility�� M&S business supports the DoD, DHS, FAA and National Aeronautics and Space Administration (NASA). Its Systems Training Solutions Assessment, Development and Delivery business provides systems training solutions assessment, development and delivery support. In addition, Engility provides training solutions across the DoD with regard to training requirements for several acquisition programs, as well as Air Operations Centers and Distributed Mission Operations. It provides technology training solutions for Command and Control, Command, Control and Communications, Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance, Air Traffic Control and Explosive Ordnance Disposal (EOD).

The Company�� Program Management Support business provides qualified staff to perform all aspects of Program and Project Management, including support for planning, organizing, securing, and managing resources. It provides strategic planning and support to program management offices and business operations. It provides financial/budget analysis and management, acquisition manage! ment supp! ort, logistics, and supply chain management and lifecycle support. Engility�� field service representatives deliver technical and advisory services, such as system administration, tactical operations center process engineering, on-location Website development and implementation, analysis center operations process engineering, network implementation and operation, database design and implementation, and information assurance procedure development, documentation, and implementation.

Mission Support Services

This segment consists of six service and support lines: military and the United States Government mission support; defense related training, education and support services; law enforcement training, education and support services; capacity building; international development and support to USAID; linguist services; counter IED analytical operational support, and asset forfeiture support. The Company trains individual soldiers and operational units, and it assists the United States Armed Forces in developing and implementing doctrine-based training systems and programs. In addition, Engility is a provider of leader development programs. Engility is a provider of law enforcement training, support and technical services to international customers, and it holds two contracts through which the United States trains foreign police.

The Company provides integrated programs that help organizations, institutions and governments abroad develop the capacity to fulfill their legally-mandated functions. International Resources Group Ltd. (IRG), its wholly owned subsidiary, has completed over 850 contracts with USAID in 140 countries. Engility�� Translation and Interpretation business provides a range of language services in support of military, intelligence and law enforcement operations, as well as document translation and exploitation services. The Company provides staffing and support services to the agencies of the DoJ, including seized assets management and disposition! , program! management support, and legal and investigative support services.

The Company competes with Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon Systems Company, SAIC, Booz Allen, DynCorp International, Inc., TASC, ManTech, AECOM, ITT Exelis, CSC, Cubic and CACI.

Advisors' Opinion:

• [By Rich Smith]

  The Department of Defense awarded three of its favorite defense contractors a combined $220 million on Monday, hiring each of Booz Allen Hamilton (NYSE: BAH  ) , SAIC (NYSE: SAI  ) , and Engility Holdings (NYSE: EGL  ) to "support shore networks with sustainment services for the Base Level Information Infrastructure."

• [By Rich Smith]

  The Department of Defense ended the week with a bang (if you'll pardon the expression) Friday. Across a field of 26 contracts awarded, the Pentagon laid out plans to spend nearly $2.5 billion in total. A few of the publicly traded companies winning awards included:

• [By Rich Smith]

  The United States Agency for International Development (USAID) has selected Engility Holdings (NYSE: EGL  ) to be part of a $400 million contract to develop "clean energy" solutions. Most of the work will be done for foreign countries.

Hot Defense Stocks To Watch For 2014: Airbus Group NV (EADSF)

Airbus Group NV, known as European Aeronautic Defence and Space Company EADS NV, is a Netherlands-based company active within the aerospace and defense sector. The Company manufactures aircrafts, helicopters, commercial space launch vehicles, missiles, satellites, defense systems and defense electronics, and offers services related to these activities. The Company oprates four divisions. The Airbus division comprises the Airbus Commercial and Airbus Military segments, which develop, manufacture, market and sell commercial jet aircrafts, military transport aircrafts and special mission aircrafts, among others. The Eurocopter division develops, markets and sells civil and military helicopters. The Astrium division develops, manufactures and sells satellites, orbital infrastructures and launchers, as well as provides space-related services. The Cassidian division develops, manufactures and sells missiles systems, military combat and training aircrafts, among others. Advisors' Opinion:

• [By Alanna Petroff]

  Airbus, part of the pan-European aerospace conglomerate EADS (EADSF), is hoping that all airlines will adopt the 18-inch standard for long-haul flights.

• [By Rich Smith]

  European plane maker and EADS (NASDAQOTH: EADSF  ) subsidiary Airbus announced Monday that one of its biggest, and most expensive planes, has just secured a big place in the airplane lineup at British Airways (BA).

• [By CNNMoney Staff]

  Shares in Airbus (EADSF) were rising by 5% in Europe after the firm reported better-than-expected quarterly results.

  Investors will also be focusing on developments in the pharmaceutical industry Tuesday. The American drug maker Pfizer (PFE, Fortune 500) wants to buy Britain's AstraZeneca (AZN) and both CEOs will appear before a U.K. parliamentary committee to answer questions about the potential takeover.

Hot Defense Stocks To Watch For 2014: Rockwell Collins Inc (COL)

Rockwell Collins, Inc. (Rockwell Collins), incorporated on March 1, 2001, is engaged in design, production and support of communications and aviation electronics for commercial and military customers worldwide. The Company�� products and systems are primarily focused on aviation applications, The integrated system solutions and products it provide to its served markets include communications, navigation, automated flight control, displays/surveillance, simulation and training, integrated electronics and information management systems. The Company also provides a range of services and support to its customers through a network of service centers, including equipment repair and overhaul, service parts, field service engineering, training, technical information services and aftermarket used equipment sales. The Company operates in two segments: Government Systems and Commercial Systems.

Government Systems

The Company�� Government Systems business provides a range of electronic products, systems and services to customers, including the United States Department of Defense, other ministries of defense, other government agencies and defense contractors around the world. These products, systems and services support airborne, precision weapon, ground and maritime applications and are used in line-fit applications on new equipment, as well as in retrofit and upgrade applications designed. The Company�� defense-related systems, products and services include communications systems and products designed to enable the transmission of information across the communications spectrum, including satellite communications; navigation products and systems, including radio navigation products, global positioning system (GPS) equipment, handheld navigation devices and multi-mode receivers; avionics sub-systems for aircraft flight decks that combine flight operations with navigation and guidance functions that can include flight controls and displays, information/data processing and communicat! ions, navigation, safety and surveillance systems; cockpit display products, including multipurpose flat panel head-down displays, wide field of view head-up and helmet-mounted displays; simulation and training systems, including visual system products, training systems and services, and maintenance, repair, parts and after-sales support services.

Avionics consists of electronic solutions for a range of airborne platforms, including fixed and rotary wing aircraft, unmanned aerial vehicles (UAVs) and the associated aircrew and maintenance training devices and services. The Company provides complete avionics solutions (including cockpit avionics, mission system applications and system integration) and also provides individual avionics products to platform integrators. The Company serves various roles within these markets, including system and subsystems integrator, as well as provider of various electronic products. Communication products include spectrum voice and data connectivity for government and military use in the air, on the ground and at sea. Surface solutions include electronic systems applied to a variety of non-airborne market segments.

Commercial Systems

The Company�� Commercial Systems business supplies aviation electronics systems, products and services to customers located throughout the world. The customer base is consists of original equipment manufacturers (OEMs) of commercial air transport, business and regional aircraft, commercial airlines and business aircraft operators. The Company�� systems and products are used in both OEM applications, as well as in retrofit and upgrade applications designed.

The Company�� commercial aviation electronics systems, products and services include integrated avionics systems, such as Pro Line Fusion. Capabilities include synthetic and enhanced vision enabled flight displays, advanced flight and performance management systems, fly-by-wire integrated flight controls and information management! solution! s to improve operational efficiency; integrated cabin electronics systems, including cabin management systems, passenger connectivity and entertainment solutions, business support systems to improve passenger productivity and passenger flight information systems; communications systems and products, such as data link, high frequency, very high frequency and satellite communications systems; navigation systems and products, including landing sensors to enable automatic landings, radio navigation and geophysical sensors, as well as flight management systems; situational awareness and surveillance systems and products, such as synthetic and enhanced vision systems, surface surveillance and guidance solutions, head-up guidance systems, weather radar and collision avoidance systems; integrated information management solutions to improve the overall efficiency of flight, maintenance and cabin operations. These include on-board information management systems and connectivity solutions, airborne and ground applications and services, and ground infrastructure and services; electro-mechanical systems, including integrated pilot control solutions and primary and secondary actuation systems; simulation and training systems, including full-flight simulators for crew training, visual system products, training systems and engineering services, and maintenance, repair, parts, after-sales support services and aftermarket used equipment.

Air transport aviation electronics include avionics, cabin systems and flight control systems for commercial transport aircraft platforms. Business and regional aviation electronics include integrated avionics, cabin management and flight control systems for application on regional and business aircraft platforms. The Company develops integrated avionics, cabin and flight control solutions for business and regional aircraft OEMs and support them with the integration into other aircraft systems. Products offered for OEM applications in the business and regional aircraft cate! gory are ! marketed directly to the aircraft OEMs.

The Company competes with Honeywell International, Inc., Thales S.A., Panasonic, Raytheon Co., Harris Corp., BAE Systems Aerospace, Inc., General Dynamics Corporation, L3 Communications, Inc., The Boeing Company, Northrop Grumman Corp., CAE Inc., General Electric Co. and Garmin International Inc.

Advisors' Opinion:

• [By Katie Spence]

  Major profits ahead
  With a price tag of $52 billion, the KC tanker contract is one of the Pentagon's largest weapons initiatives. Further, some analysts estimate that with future parts and maintenance, the contract worth could climb to $100 billion. This is great news for Boeing, but it's also great news for its subcontractors on the project -- Honeywell International� (NYSE: HON  ) is supplying the auxiliary power unit and cabin pressure control unit, Northrop Grumman (NYSE: NOC  ) is supplying Large Aircraft Infrared Countermeasures, United Technologies' (NYSE: UTX  ) subsidiary Pratt & Whitney is supplying the engines, Rockwell Collins� (NYSE: COL  ) is supplying the integrated display system, and Raytheon�is supplying the digital radar-warning receiver. All in all, this is a major initiative for defense contractors, and good news for Boeing is good news for all.�

• [By Eric Volkman]

  Yesterday, a day before Rockwell Collins (NYSE: COL  ) unveiled its latest quarterly results, the company declared a quarterly dividend of $0.30 per share of its common stock. This amount matches Rockwell Collins' previous four quarterly distributions.

• [By Rich Smith]

  The U.S. Department of Defense awarded multiple contractors shares in some 17 contracts Tuesday, valued at up to $1.3 billion in combined dollar value. Most of the funds awarded went to a series of 13 contractors working on a single cyber-defense project -- but there were a few other winners. Among them:

Hot Defense Stocks To Watch For 2014: Safran SA (SAFRY.PK)

Safran SA is a France-based high-technology company which produces aircraft and rocket engines and propulsion systems. It divides its work into three segments: Aerospace, Aircraft, Defense and Security. The Aerospace Propulsion division provides engines, turbines and parts for aircraft, and rocket boosters for civil, military and spatial markets through several subsidiaries, including Snecma, among others. The Aircraft Equipment division produces landing gear, wheels and carbon brakes, aircraft engine nacelles and airborne power electronics through its subsidiaries, including Aircelle, among others. The Defense division includes the subsidiary, Sagem, and makes systems and equipment for inertial navigation and other defense applications to be used on military transport and combat aircraft, helicopters, warships, armored vehicles and artillery systems. In October 2013, the Company completed the sale of its United States-based subsidiary, Global Motors Inc to Allied Motion Inc. Advisors' Opinion:

• [By Daniel Lauchheimer]

  Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.