Over the years, we have done well with companies in the aerospace and defense sectors; recently, we've also noted how the airline industry is getting its act together, consolidating, and making money, says Russ Kaplan, editor of the Heartland Advisor.

A fact that many investors overlook is that the above-mentioned sectors depend on other companies to obtain the parts they use in the products they make.

Without the proper materials we would have no airplanes or industrial gas turbines. One such company is our latest recommendation, Precision Cast Parts Corporation (PCP).

Precision Castparts was founded in 1949 and is located in Portland, Oregon. In its 66 years, this company has adapted to considerable changes in the Aerospace and Defense industries and has served such companies as Boeing and General Electric admirably.

It supplies metal castings, components, and other parts to about every industry involving aircraft and aerospace, including the military. Without the proper materials, we would have no airplanes or industrial gas turbines.

As for finances, there is no question about this company, it has a rating of A++. This financial strength gives it the ability to keep up with the constant changes in its industry.

Precision Castparts has fallen from a high of $275 to a recent price of $205. The reason is that its third quarter earnings were down due to a downturn in the world economy and the need to upgrade its parts to the continual changes in technology.

This-in my opinion-is a total overreaction and an excellent buying opportunity for us. Based on its history and the current Stock Market, it is very undervalued given a price/earnings ratio of 15 and its strong balance sheet.

Precision Castparts is not, however, a stock for those who are income oriented since it only pays a minimal dividend. It does, however, show promise of considerable growth in the future.

Meanwhile, every quarter Warren Buffett's Berkshire Hathaway is required to report its holdings. I was pleasantly surprised to see that just after I began purchasing PCP for client accounts, it was announced that Buffett had purchased 2,853,688 shares.

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