SPY EYES

The defense, biotech and construction companies that are leading the war effort. From the Tomahawk cruise missile to the B-2 stealth bomber, war is big business. Of course, while government expenditures can seem staggering, the effect on the big defense contractors are muted. Most have commercial aviation businesses that are suffering. And all have seen their stock prices drop since bombing in Iraq began on March 19, continuing a slide that has left most near 52-week lows. Then there are the biotechs, racing to create vaccines and treatments to prepare for possible biological terrorism. But few have proven therapies and most are burning through cash. Finally, there are the rebuilders. When the war with Iraq ends, there will be roads to be reconstructed and an entire oil industry to be modernized. Projects will run into the billions of dollars. But guessing how that will translate into long-term earnings growth is tough. Here is a list of stocks that investors will no doubt be watching as war in Iraq and on terrorism intensifies. Performance is tracked since March 19. Company (Ticker) Mar 19 price Current price Percent change 52-week high 52-week low Fwd P/E* What they're supplying Defense Alliant Techsystems (ATK) $53.02 $79.18 49.3% $91.39 $70.43 8.9 Ammunition used in rifles and machine guns Boeing (BA) $27.95 $71.43 155.6% $74.53 $35.81 15.9 Apache helicopters; Lancer jets General Dynamics (GD) $58.42 $76.89 31.6% $78.96 $43.11 11.0 M-1 Abrams tank L-3 Communications (LLL) $42.61 $94.49 121.8% $94.87 $63.57 10.6 Communications systems; reconnaissance and detection technology Lockheed Martin (LMT) $48.30 $82.78 71.4% $87.19 $67.39 10.6 Nighthawk stealth fighters Northrop Grumman (NOC) $87.45 $65.91 -24.6% $66.69 $42.51 9.8 B-2 Spirit stealth bomber; Global Hawk spy plane, Tomcat fighter jets Raytheon (RTN) $28.35 $57.38 102.4% $58.30 $40.75 10.8 Tomahawk cruise missiles United Technologies (UTX) $61.80 $73.38 18.7% $74.97 $45.17 13.8 Black Hawk helicopter The Rebuilders Fluor (FLR) $33.37 $50.96 52.7% $58.62 $36.62 15.6 Bidding on the biggest current USAID contract, worth up to $600 million, to rebuild Iraq's infrastructure Halliburton (HAL) $20.50 $31.34 52.9% $34.87 $16.40 14.7 Dick Cheney's old company, it is a leading contender for contracts to build up oil infrastructure The Biotechs Baxter International (BAX) $21.00 $58.02 176.3% $61.88 $45.46 12.3 With Acambis, is supplying 209 million doses of smallpox vaccine Human Genome Sciences (HGSI) $8.75 $34.25 291.4% $33.25 $0.87 -179.7 Its ABthrax to treat and prevent anthrax infection is being tested for safety and effectiveness Vaxgen (VXGN) $3.45 $0.42 -87.8% $1.00 $0.30 0.1 Developing vaccines for anthrax and smallpox Security Last updated Apr 13 10:01 Sources: Thomson/Baseline, Standard & Poor's *Forward P/E based on earnings estimates for the current fiscal year. CNN