Foster Wheeler"One obvious trend which will emerge...


Foster Wheeler

"One obvious trend which will emerge from the Gulf War will be the need to rebuild Kuwait once Iraq has been driven out . . . Foster Wheeler (FWC, NYSE, around $29) could well benefit from contracts to rebuild Kuwait. . . . There have been rumors circulating that the Kuwaiti royal family had approached the company," says Charles LaLoggia's Special Situation Report, Rochester, N.Y.

"Meanwhile, with its high percentage of international revenues, Foster could become a prime takeover candidate . . . We rate the stock a buy.


Worldcorp (WOA, NYSE, around $6), the parent of World Airways and Key Airlines, provides passenger and cargo charter services throughout the world," explains George Putnam, The Turnaround Letter, Boston, Mass.

Despite steady revenue growth since 1986, profits began to falter in late 1989 . . . Meanwhile, the firm is benefiting from the Middle East war. One of its biggest customers is the U.S. military. Overall, we think the company is headed back toward substantial profitability. We recommend purchase up to $7 per share."


"Lockheed (LK, NYSE, $40) despite certain woes, is up sharply since Iraq invaded Kuwait," says United & Babson Investment Report, Boston, Mass.

The company is well represented in the Mideast conflict . . . While earnings are likely to be flattish over the next several quarters, cash flow is improving, and there is a good chance that Lockheed could soon land one or two major contracts. Although the shares have risen sharply with the market, they remain attractive long term. Buy.


"E-Systems (ESY, NYSE, around $38) makes aircraft navigation, communication and surveillance equipment. The controversial high-tech sector has proved itself in the Gulf war," says V. Barry Jeffrey & Co. Much of this equipment had not been battle tested and most is performing above expectations. Therefore, a shift in defense spending may result.

"E-Systems is working on a joint venture with a German aircraft company. E-Systems offers aggressive investors an investment opportunity in the shrinking defense industry."

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