Arms And The Profits

You might think doing business with the cutback-stricken defense Establishment would be a losing game. Untrue. Big operators such as Lockheed Martin and Raytheon are making big bucks, and even some small fry are doing well. Take Signal Technology (STZ), whose shares have rocketed from 3 to 6 since mid-August. Money manager Scott Black sees them hitting 12 in a year, based on Signal's widening profit margins and rising sales. Right now, Signal has an order backlog of $92.6 million, 40% higher than a year ago.

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