This is a great analysis of choppers that could be a proxy for the offshore drilling boom. According to the May 12th edition of Fortune Magazine, the offshore drilling boom combined along with increased usage of choppers for private travel has lead to a shortage of helicopters and their parts.

The price of a barrel of oil has passed the $122 mark for the first time. US light crude hit a fresh high of $122.73 in New York trading, while London's Brent crude has passed $120 for the first time, hitting $120.99.

I love ABB!

Diversified industrial Eaton Corp (ETN) reported first quarter earnings of $1.64 (vs. $1.56 a year ago) after accounting for an $0.06 charge for acquisitions and integration of those acquisitions. Excluding those charges, Eaton earned $1.70 vs. the $1.66 street estimates. Eaton also raised full year guidance by $0.05 to between $7.30 and $7.80.

“The GE earnings miss and guidance revision last week highlights how the increasingly weak macro environment can quickly sneak up on even the most diversified and well-run of industrials businesses,”

I would actually be buying calls in specific industrial names and have Honeywell (HON) and Union Pacific (UNP) calls on my book for the past 2 weeks.

Chances are, you have never heard of Harsco… an industrial company that does everything from on-site work outsourcing to roofing scaffolding, from railroad tracks to mineral air-abrasives. I recently made a “buy” pitch recommendation for Harsco as a manager of the Nittany Lion Fund. As a great company that is totally flying under the radar in my view, you need to take a look!

"The Boeing Co. delayed its 787 jetliner program again Tuesday, pushing back its expected debut in commercial service to the third quarter of 2009 as it continues to grapple with problems involving its supply chain and the need to redo work done by contractors."

These new delays push the 787's schedule back approximately another six months, more than a year behind its original schedule.

In a shaky stock market environment, there is no better place to turn than the defense contractors. Leading the S&P index by about 20% in 2008 (the 8th straight year of better relative performance), the so-called “big five” have their work cut out for them in 2008 and beyond. It is pretty much a foregone conclusion that defense spending will increase this year.

Short piece out on Reuters this morning (”Siemens to regroup international operations“) citing a German daily newspaper that Siemens is in the process of restructuring its international operations into 20 regional centers:

The industrials sector of the stock market is where I am most involved nowadays. While the big names like General Electric (NYSE: GE) and Caterpillar (NYSE: CAT) may not jump out at you as big gainers, plenty of these rock-solid companies have been hit unfairly, and I see value. As an added bonus, industrials companies often act as a hedge to thriving markets like agriculture.

Steel's Rally Is Just Beginning, Despite steel's epic advance, Credit Suisse believes prices are headed higher. Key facts include:

The price of an ounce of gold rose $5.50 Monday, closing at a record $901.60 on the New York Mercantile Exchange. Gold has soared $66.70 an ounce, or 8%, already this year — and 249% from its monthly low of $258 an ounce in March 2001

It is amazing what a volatile market can do. As I experience my first market correction of my short investing career, everything that I have read has prepared me in finding the bargains. The big financials are the obvious choices but finding a small well-run company is where the big money is made.

By J. LYNN LUNSFORD and DANIEL MICHAELS
January 16, 2008; Page A3

Boeing Co., already six months behind schedule on its 787 Dreamliner jet program, is close to announcing more delays that might hurt its ability to deliver as many planes as promised in the initial year of production.

Capstone Turbine announces new orders for the their new C200 unit. Russia becoming an early adopter of the technology and buying out the remaining production slots for the units in 2008. Hopefully we can get UTC to come to the resucue and help us with production issues.