Annoyingly, North Korea is making itself felt yet again: Pyongyang may test-fire a Taepodong-2 missile off its northeastern coast within days, according to the Associated Press.
Against this background, Japanese and US defence officials agreed in Hawaii on 17th June to deploy three to four surface-to-air missile batteries in Okinawa. For the first time ever, America will put Patriot Advanced Capability-3 [PAC-3] missiles on Japanese soil.
Here are some thematic investment pointers:
1. Last year, America allowed Japan to produce such PAC-3 missiles: Who is making these in Japan?
2. Next to deploying missiles, America has moved forward to this coming Monday its plan to test a missile-detecting radar system in northern Japan, according to Kyodo Press. Who makes such radar systems?
Money-making implications: Buy Raytheon (NYSE:RTN) in America and Mitsubishi Heavy in Japan. Raytheon makes these Patriots and I assume that, on account of its importance, MHI will be involved in this deal one way or another. Perhaps your broker can provide answers to the two thematic pointers just made.
RTN 1-yr chart: