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ARGON ST Inc. (STST) Stock Derives Strength from Military and Civilian Business Blend

This small-capital company from Fairfax, VA is a vital part of modern warfare. It is a part of the Aerospace & Defense Industry from the Capital Goods Sector. The company makes products for electronic intelligence. Wireless communications are used to intercept and identify signals between aircraft, ships, submarines, and terrestrial vehicles. The systems also serve for surveillance and reconnaissance.

Though military forces of the United States and its allies are key clients, the company’s know-how has civilian applications as well. June 2008 has seen new business from enterprises involved in logistics. Any business can benefit from rapid and reliable communication systems.

Business results from the Most Recent Quarter show that the company is in good financial shape, apart from its invaluable contributions to national security. Revenues for the quarter have grown by 38% over the previous year. The management is nearly swamped with enquires from clients for new products and services.

The stock price has climbed from a 52-week low of $15.18 to $24.26 by the middle of June 2008. The Earnings per Share are 0.68, and the Beta is 1.42. A majority of the 21.53 million shares are owned by reputed financial institutions. Capital Spending has grown by more than 40% over the past five years, whereas the comparable figure for the industry is less than 4%. The Gross Margin, at 17.10 on a Trailing Twelve Months basis, is also more than twice that achieved by competitors.

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