Website sees LI defense firm as safe from budget cuts

The investment website Seeking Alpha on Thursday makes a major case for buying shares of Hauppauge-based defense contractor Orbit International Corp., with the stock symbol ORBT.

Even if Washington's cost-cutting reduces the Pentagon budget, Orbit probably won't be affected much because it mostly works on existing military hardware, not new projects, the website says. (Newsday items this year include Orbit's contract to supply weapons control panels for U.S. Navy destroyers and cruisers, and another contract to make panels for the Navy's E-C2 Hawkeye).

"One problem that may be affecting ORBT is the concern about reduced defense spending. The key point here, and it’s a huge point, is that if you look at the company’s order history, roughly 90 percent of ORBT’s business is for existing military programs in the form of modernization and refurbishment," Seeking Alpha says.

The website calls Orbit "a strong company with a robust backlog currently reporting great results.".

". . . With the recent market  down wave, the shares have sold off. 'Mr. Market' has thrown the baby out with the bath water, providing a second chance at buying a great company with a solid operating history at a very attractive price."