Cubic Corp the Big Winner as Pentagon Awards $660 Million in Defense Contracts

Lockheed Martin, L-3 Communications, Griffon Corporation, and Boeing also win work.

Jul 24, 2014 at 2:46PM

The Department of Defense awarded only nine defense contracts in its Wednesday evening announcement of contract awards. The total value of all contracts awarded was $660.2 million, but the vast majority of these funds were awarded through just one contract that went to Cubic Corp (NYSE:CUB).

This indefinite-delivery/indefinite-quantity contract, worth up to $500 million, hires Cubic to conduct J3/7 chemical, biological, radiological, nuclear, and high-yield explosive (CBRNE) exercises, and to perform capability assessments and training and development exercises for the U.S. Defense Threat Reduction Agency through July 2024.

Among the other publicly traded companies winning awards last night:

  • Lockheed Martin (NYSE:LMT) won a contract worth up to $40.7 million to produce for the U.S. Navy one multi-mission signal processor equipment set, plus ballistic missile defense 4.0.2 equipment, and Aegis Weapon System upgraded equipment needed to support fielding Aegis modernization for the fleet. Delivery is due March 2016.
  • L-3 Communications (NYSE:LLL) was awarded a $14.1 million contract modification to reconfigure and improve the arrangement of Tactical Operational Flight Trainer (TOFT) hardware and software used in training pilots to operate F/A-18E/F Super Hornet and EA-18G Growler aircraft. This work should be completed by June 2016.
  • Telephonics Corp., which S&P Capital IQ lists as a subsidiary of Griffon Corporation (NYSE:GFF), won a $13.2 million contract for work on the U.S. Air Force's Enhanced Mode S-FAA Radar and Enhanced Mode 5 Radar, and for procurement of long-lead material related to these systems. Work under this contract should continue through Nov. 20, 2017.
  • Boeing (NYSE:BA) was awarded a $7.7 million contract modification to perform maintenance and remanufacturing work on U.S. Navy F/A18 A-F fighter jets through July 2015.

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Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of L-3 Communications Holdings and Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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