"Command, control, communications, computers, intelligence, surveillance and reconnaissance -- or C4ISR -- is the new face of the military," says Gregg Early.
The tech expert and executive editor of Personal Finance explains, "Big projects always grab headlines, but the true growth companies are those rebuilding our military's strategic capabilities."
"The Joint Tactical Radio System (JTRS, or 'jitters') is the next-generation voice-and-data radio for use by the US military in field operations after 2010.
"Boeing was the program manager of the first phase and bungled the job.
"But things are back on track, and the two companies that will equip our armed forces and support those radios are Harris Corp. (NYSE: HRS) and Thales (Other OTC: THLEF).
"Harris is seeing a lot of institutional buying, and the stock is moving briskly to the upside. Fourth quarter revenue was up almost 20%. Harris Corp is a great long-term buy.
"Thales is a France-based defense communications firm and has strong business ties on both sides of the Atlantic.
"Project management in the defense context is an enormous job, working with government civilians and military poobahs and balance that against corporate big wigs, engineers, program managers, subcontractors, etc.
"Two companies that get this done quietly and effectively in C4ISR and avionics are L3 Communications (NYSE: LLL) and Rockwell Collins (NYSE: ROC).
"Both are doing big business these days. L3 is seeing some increased institutional buying, even at lofty levels; Rockwell has experienced the same, plus its partnership with Israel-based Elbit Systems (Vision Systems International) is scoring contracts around the world.
"Two companies delivering the products and services that are the engines of C4ISR are QinetiQ (Other OTC: QNTQF) and FLIR Systems (NASDAQ: FLIR).
"QinetiQ went public a few years back after decades as the UK Ministry of Defence's go-to group on cutting-edge technologies. Q and his labs in the old James Bond books and movies are a paean to QinetiQ.
"It now has a US division that's grown rapidly in recent years, pulling in major talent from the US intelligence community, including former CIA Director George Tenet.
"From program management to robotics to UAVs and beyond, QinetiQ is making a name for itself in the C4ISR community in the US, UK, Middle East and Australia.
"FLIR is actually the acronym for forward-looking infrared radar. And that's what FLIR Systems builds. Not sexy, but one of the most prized possessions of forward deployed troops or command posts. And now it's showing up in home security systems as well as marine equipment.
"These cameras can see through snow, rain, fog, night, you name it. And FLIR makes the best systems out there."
