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Capital Goods/Industrials: Aerospace & Defense Electronics - 2007

Steven Binder, 49, who holds the top spot for a ninth year in a row, is hailed by one money manager for his “unparalleled industry knowledge and contacts.”

Steven Binder

First Team

Steven Binder

Bear Stearns

Second Team

Robert Stallard, BofA

Third Team

Douglas Harned, Sanford C. Bernstein

Runners-Up

Joseph Campbell Jr., Lehman; Heidi Wood, Morgan Stanley


Steven Binder, 49, who holds the top spot for a ninth year in a row, is hailed by one money manager for his “unparalleled industry knowledge and contacts.” In September 2006 his network of sources prompted the Bear Stearns analyst to predict that Airbus’s introduction of its A380 superjumbo plane, from conglomerate European Aeronautic Defense and Space Co., would suffer further delays (it was already more than a year behind schedule), thus sparking increased interest in rival Boeing Co.’s 787 Dreamliner. One month later Airbus announced additional delays, and Chicago-based Boeing soon received big orders from Germany’s Lufthansa, India’s Jet Airways and others. Boeing stock skyrocketed 47.2 percent by late July, from $72.87 to $107.23, before getting caught up in the broad market rout; in mid-September the shares were trading at $99.35. Clients consider Robert Stallard, who repeats at No. 2, a “valuable resource” and an “excellent stock picker,” citing the Banc of America Securities analyst’s long-standing bullish stance on Rockwell Collins, a key supplier to Boeing. First recommended in October 2003, shares of the Cedar Rapids, Iowa–based aviation-electronics maker rose 31.6 percent for the 12 months ended mid-September; during the same period the sector advanced 26.9 percent. A runner-up last year, Douglas Harned of Sanford C. Bernstein takes third. In January 2005 the former aviation industry consultant launched coverage of Lockheed Martin Corp. with an outperform, at $54.21, reasoning that the Bethesda, Maryland–based defense supplier’s aircraft programs would continue to win government contracts. He was right. Through mid-September 2007 the stock had outperformed the index by 21.4 percentage points.

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