1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

FPA Capital Comments on Alliant Techsystems

October 31, 2012 | About:

Alliant Techsystems (ATK) is our newest holding. The company’s Aerospace Systems segment develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, and small and micro-satellites. In addition, it provides composites to military and civil airplane manufacturers. The company’s Defense segment develops and produces military small, medium, and large caliber ammunition. It also provides defense electronics systems, missile subsystems and components, and propulsion and controls systems. Last, in its sporting segment, ATK produces ammunition and sells accessories for local law enforcement departments and the sport hunting/sport enthusiast markets.

We purchased our initial position in ATK below $45, or less than 6x trailing-twelve-months earnings and 55% of revenues to enterprise value. We believe the risk:reward ratio is very attractive at our entry point. At time of writing this commentary, ATK had rallied above $55 or roughly 30% higher than our cost basis.

From FPA Capital’s third quarter commentary.

Rating: 2.3/5 (6 votes)


Webmind123 - 2 years ago    Report SPAM

Must feel great supporting the war industry. We can go to bed at night knowing we've made the world a better place. And we wonder why the world is the way it is. Must be someone else's fault or problem. There's nothing we can really do about it. Be realistic. Make money.

Please leave your comment:

Performances of the stocks mentioned by

User Generated Screeners

HOLKLSUTrump Trade - Late Stage
HOLKLSUTrump Trade Group-Late Stage
jlhpersonalJason's Greenblatt - Updated L
dosowsky1Fast Revenue Growth
Kbannon77All Stocks US
Kbannon77All Stocks
opadovaniP median2
carter2u2Small Cap No Debt
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat