That's why Garrity sees a strong likelihood that it could be acquired by a larger contractor, he said recently. The company recently lost a major UV contract to Northrop Grumman but gained one from the Army. One major stockholder, Kennedy Capital Management's Tim Hasara, whose firm owns nearly 1 million United Industrial shares, says he believes the company is getting prettied up for a possible sale to a larger outfit. Another major investor, Steel Partners, has been trying to get management to sell out or otherwise jump-start the stock for several quarters now. The defense industries have gone through a consolidation period where the companies left now are much stronger.
Investors can now make a fair return.
The Pentagon is the best customer in the world. With much of the big action in defense stocks already behind us, United Industrial and Grumman are two stocks that could be in line for some respectable price gains. Bid on or offer business services Web design, logo design, computer consulting, and more. Business Week Online may receive a share of any fees you pay for services. The McGraw-Hill Companies Inc. All rights reserved.