Elbit

Elbit is an Isreali defense contractor quoted on Nasdaq and with revenues over $1.3bn. The shares have languished from over $50 down to the current $31 over the last year as a) military spending is questioned in the USA and Europe, and b) Isreali shares have been under pressure as risk areas. At $31 they are paying around a 4% dividend and have a P/E of only 7. The current CEO retires next year. This is a company who after Aerovironment is a large player in drones, military intelligence, heads up displays and command systems. According to their CEO their backlog of orders is rebuilding well over the last 2 qtrs and despite being hampered by cutbacks and economic headwinds are turning things around. I think that if they drop down much more, particularly to around $25 then paying over 5% dividends they will make my list as a buy. This is what the CEO said recently:-

Joseph Ackerman, President and CEO of Elbit Systems, commented: "In the second quarter we saw a continued focus on improving our internal efficiencies, which enabled us to lower our G&A expenses during the quarter. Our second quarter continues the trend of increased revenues from the Latin American andAsia-Pacific markets, which made up over a third of our revenues in the quarter. In fact, over half of our revenues are coming from regions whose defense budgets are continuing to grow, including Israel. I believe that our focus on these regions will enable us to continue to grow, even against the background of tightening budgets in Europe and the United States."