VSE Corporation provides various engineering, logistics, management, and technical services on a contract basis. The Dept. of Defense makes up 90% of VSEC's revenue. The work with the DoD in the following capacities: Advisor in helping DoD in purchase decisions, maintenance of vehicles and equipment which they provide at a 20% cost reduction vs. the Govt doing it in-house, helps Navy rehab old ships to be sold to approved foreign countries. VSEC has been around since 1959. All of their Executives have over 20yrs each in the military. The military is the BIGGEST and MOST LOYAL "FRATERNITY" and with the Executives having such an extensive history in the Armed Forces I don't see them not being included in many contracts.

AECOM is a great play on the need for infrastructure. 40% of their revenue is from overseas. They are working on expanding the NYC subway system, was part of the redevelopment of the World Trade Center. Great work in Dubai. Everything from water treatment, sewer treatment, bridges, natural resource infrastructure.

Great company in a great industry. Management of RS has a tremendous track record of buying other metal centers, implementing their philosophies and immediately improving margins by 200 basis points or so. This industry is EXTREMELY fragmented so there are plenty of other good opportunities for RS to buy. In the 7/19/07 conference call CEO, David Hannah, stated that he has a list of 20 names as possible opportunities to buy. They have a debt/capital ratio of 37.61% and comfortable leveraging up to 50%.

Does anyone see our prison system getting smaller anytime soon? I didn't think so. Admittedly the shares are getting a little rich, might take some profits soon. The GEO Group, Inc. and its subsidiaries provide government-outsourced services in the management of correctional, detention, and mental health facilities in the United States, Australia, South Africa, the United Kingdom, and Canada. The company operates correctional and detention facilities, including maximum, medium, and minimum security prisons; immigration detention centers; minimum security detention centers; and mental health and residential treatment facilities.

Ceradyne, Inc., together with its subsidiaries, engages in the development, manufacture, and marketing of technical ceramic products, powders, and components for defense, industrial, automotive/diesel, and commercial applications in the United States. Its product portfolio comprises lightweight ceramic armor for soldiers and other military applications; ceramic industrial components for erosion and corrosion resistant applications; and ceramic powders, including boron carbide, boron nitride, titanium diboride, calcium hexaboride, and zirconium diboride, which are used in manufacturing armor and a range of industrial products. Stock has more than doubled over the past year and still trading at a PE of only 16. ROE of 39%.

Anixter International, Inc., through its subsidiaries, distributes communications and specialty wire and cable products, fasteners, and small parts in the United States and internationally. Its communications products include voice, data, video, and security products used to connect personal computers, peripheral equipment, mainframe equipment, security equipment, and various networks to each other. AXE is benefiting from company's updating and/or building data centers. Security systems (for commercial, nothing like Brinks for your home) is becoming an increasingly big part of their gains. Stock has almost doubled over the past year and still trading at a low PE of 14 with a PEG of 1.07, short ratio of 8.1. Sam Zell is a majority owner with 5.24 million shares

Peabody Energy Corporation, through its subsidiaries, engages in the exploration, mining, and production of coal worldwide. It owns interests in 40 coal operations located in the United States and Australia, as well as owns joint venture interests in a Venezuelan mine. The company also markets, brokerages, and trades coal. It also develops mine-mouth coal-fueled generating plants; produces coalbed methane; and develops Btu Conversion technologies, which are designed to convert coal to natural gas and transportation fuels.

McDermott International, Inc., through its subsidiaries, operates as an energy services company worldwide. It operates in three segments: Offshore Oil and Gas Construction, Government Operations, and Power Generation Systems. Great play on the long-term bull oil industry. I hope to own this baby for another 10 years.