The Most Recent Quarter ended November 2007 has been nearly pyrotechnic for this company. Net income has jumped 67%, while sales have grown by about a third. The stock market has responded as can be expected to this spectacular business performance. However, there is more than commerce in owning and holding this stock from the Aerospace & Defense Industry.

The company provides pyrotechnic canisters and firing systems to NASA and the US Air Force. The technology of emitting colored flares has important civilian applications as well. The business is relevant for all military and strategic allies of the United States. Applications related to satellites and other activities in outer space make this small capital stock of today a potential block-buster of the future.

The company is a leader in ordnance and electronic products and systems. It has vast in-house development capabilities. It has a classified facility to manufacture and store its specialized and sensitive products. The technical capabilities of this company make it a strategic resource for the United States.

There are adequate financial attractions to own this stock, apart from patriotic fervor. The Price to Free Cash Flow on Trailing Twelve Months Basis is 134.10. The Dividend Yield is 3.16 against 1.82 for the Aerospace & Defense Industry. The Payout Ratio has been 93.49 over the last four quarters, during which period the entire Capital Goods Sector could manage just 19.02. Management has accelerated Capital Spending by over 75% over the past five years. Investors can therefore anticipate a bright future for this stock.

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