Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

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Monday, June 30, 2008

BAE Systems Seeker Detects Warhead; THAAD System Scores Intercept

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Comtex

NASHUA, N.H., Jun 30, 2008 (BUSINESS WIRE) ----A BAE Systems seeker detected an incoming ballistic missile enabling the Terminal High Altitude Area Defense (THAAD) weapon system to intercept its target during testing at the Pacific Missile Range Facility.

The test, conducted by the U.S. Missile Defense Agency and THAAD prime contractor and systems integrator Lockheed Martin, examined how the interceptor and its seeker detect a separating target missile to destroy the warhead.

"In this test, the THAAD seeker had to detect the incoming warhead among multiple pieces of the incoming target missile," said John Watkins, BAE Systems' THAAD program director. "To further complicate things, this was the program's first daylight engagement, meaning the seeker had to distinguish the target from false 'targets' created by reflected sunlight."

Watkins likened the achievement to "hitting a bullet with a bullet while the shell casing is flying along side and someone is shining a flashlight in your eyes."

BAE Systems' seeker provides infrared imagery of the warhead to the missile computer to guide the interceptor to its target. THAAD intercept testing will continue through 2009. Upcoming tests at the Pacific Missile Range will be conducted against increasingly complex targets outside the Earth's atmosphere.

THAAD is designed to defend U.S. and allied soldiers, military assets, and population centers from the threat of ballistic-missile attacks, destroying enemy warheads through direct "hit-to-kill" technology. BAE Systems has been working on missile defense seekers since the late 1970s. The company is scheduled to deliver the first production seekers in fiscal year 2009.

About BAE Systems

BAE Systems is the premier global defense and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 97,500 employees worldwide, BAE Systems' sales exceeded GBP 15.7 billion (US $31.4 billion) in 2007.

SOURCE: BAE Systems

BAE Systems Karen Spiller, +1 603-885-2818
   Mobile: +1 603-566-2090 karen.spiller@baesystems.com or Shannon Smith, +1 703-907-8257 Mobile : +1 703-967-3854 shannon.n.smith@baesystems.com
   www.baesystems.com