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Bush A Boon For Ceradyne?
By Ian Cooper
Keep an eye on companies like Ceradyne with regards to the Bush administration’s proposed 2008 budget. According to sources, a good chunk of the requested monies will be spent on military equipment repair and replacement, which may provide that much-needed catalyst for Ceradyne shareholders.
According to The New York Times, “the administration is asking Congress for an immediate $93 billion, in a supplemental budget request that would add to what Congress approved months ago. And of that, $14 billion is for replacing equipment, bringing this year’s total refurbishment budge, as well, to $37.6 billion.”
This, plus a 20,000-troop surge should boost any defense companies that specialize in equipping ground troops. Ceradyne, which makes body armor, is one of those. The other boon to Ceradyne shares: It trades with an undervalued PEG of 0.80.
Even better, Forbes.com just called Ceradyne, an “attractively valued stock in the defense group.” The good bet? Load up on Ceradyne (CRDN) shares.
Take care,
Ian L. Cooper, Editor, Early Alert Trader