Playing Solar / Defense Companies

I had to leave work early yesterday to run some errands, so I did not get a chance to see the market close. It looks like it fared well, up 247. Solar stocks did well yesterday (I'm following YGE and TSL heavily, I think they are best of breed). I expect the solar stocks to go up for awhile then come back down. They are going to mimic tech of 99-01. They have been very cyclical of late...and with an increase I plan to sell a covered call on YGE for strike price 20 (not sure what month, looking at MAR 08 though). As prices retreat I will buy a call at strike price 15 for the same month. The difference will be pocket money. If I can time it right I'd like to sell my call on TSL and rebuy at a lower price. Bulls make money, bears make money, pigs get slaughtered...so call me a pig, but I fully expect a 100% return on TSL. Yesterday at close bidders were wanting 9.40 per contract. Had I sold, that's a 23% gain ($180) in 3 days. Try getting that by owning a stock! That is a good gain considering the stock only went up about 15%. Anyways, long solar because remember...we are in a global warming crisis. (kidding).

Since I am active reservist in the Indiana National Guard, I was trying to find ways to play the market on defense industries. Now pretty much any defense stock is a safe bet at least until NOV 08 when a democratic president will likely take over... but I specifically have my eyes set on the Mine Resistant Ambush Protectant (MRAP) vehicles. These are heavy duty uparmored vehicles that can withstand most IED's. While most contracts have came out for MRAP, MRAP II contracts will be awarded next year. Let me tell you, the Army needs these vehicles. And lawmakers will gain public support for the war by giving funds to these programs because it shows we are protecting our troops. How can we benefit? I currently have OSK, a late MRAP contender that never received any contracts. They have a PE ratio of around 13. They have been eliminated actually from MRAP I, but have teamed up with the company I think will make the most here, CRDN, for MRAP II. CRDN is the body armor company, making the sappy plates for the flack jackets we have in country (of which there will be orders for those within the next year). Now OSK will reap some benefit to this...I expect a 20% increase in their stock price in a year's time. Both of these companies are ahead of the curve, and are working on MRAP II instead of bothering with MRAP I. Don't forget that we will be supplying other countries with body armor and vehicles as well, specifically Iraq and Afganistan. How will these countries pay for these? They won't, your tax dollars will. Who benefits? All of us if we can invest in these companies. I'd suggest buying a 75 dollar call on CRDN at 5 or better for MAR 08 (AUE-CO). Look to buy these on down days.