Don Reed BAE Systems BA-LSE TOP PICK Jul 12, 2007

(A Top Pick July 12/07. Up 18%.) (London exchange.) #1 defence contractor in the UK and #5 globally. Have a contract with the Saudis for some planes.

(A Top Pick Jul 12/07. Up 21%.)(London Stock Exchange) Have some great Saudi contracts. #1 in Europe and #5 in the US in terms of the aerospace industry.

(Top Pick Jul 12/07, Flat)(London Stock Exchange.)They are a cost plus contractor. In defence and aerospace system.

A UK defense stock. He does not typically own defense stocks, due to the cyclical nature of the business. For BAE, their order backlog is very good. Although Brexit may be impacting them, he thinks this is an attractive investment -- especially if there is a pull back in the market. He would have no problems buying at these levels as it trades at 15-20% discount to its North American counterparts.