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Matthew Potter  

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  • Defense Industrials Close Out Mixed In 2012 And Prepare For Upcoming Challenges [View article]
    Thank you for your comments. Yes, these companies especially LMT and BA will be around even if there is severe contraction in defense spending.
    Jan 31, 2013. 01:20 PM | Likes Like |Link to Comment
  • With defense budgets being slashed around the world, the collapse of the BAE's $45B merger with EADS will put the focus on possible deals between tier-two firms such as Rockwell Collins (COL), L-3 Communications (LLL), SAIC (SAI) and Harris (HRS), industry execs and bankers tell Reuters. Much could depend on whether Congress averts the automatic defense cuts that are due from Jan 1. [View news story]
    Nothing will happen with SAI until they complete their split into 2 companies. ITT Exelis (XLS) should be a tempting target as well. It is the former ITT Defense and is $5-6 billion in size.
    Nov 9, 2012. 07:21 AM | Likes Like |Link to Comment
  • Understanding Carl Icahn's Oshkosh Strategy [View article]
    Unless OSK wins the JLTV contract their defense business will wither as the U.S. scales back its commitment to Afghanistan. There is now little demand for new MRAP vehicles and the core military truck contract will have lesser demand due to there being no more combat replacements required.

    Of course if they win the JLTV contract they will have $10 billion or more in sales over the next 20 years.
    Nov 6, 2012. 11:24 PM | Likes Like |Link to Comment
  • Smaller Defense Contractors Are Seeing Mixed Results [View article]
    Thank you. I found your article very interesting. There is definately going to be some movement in this sector and those companies that are more diverse will be in better shape.
    Nov 6, 2012. 10:56 AM | Likes Like |Link to Comment
  • Honeywell: Strong Third Quarter On Cost Control, But Little Inspiring Outlook [View article]
    I think you will start seeing this with most of the aerospace / defense industrial stocks. They will continue their cost cutting moves and share buybacks that will help value but many will see declining revenue over the next several quarters. Long term their can only be so much cost reductions as ultimately it will come out of their labor force. Then they will all be forced to compete for a smaller amount of government contracts.
    Oct 21, 2012. 06:41 PM | Likes Like |Link to Comment
  • ITT Exelis Heralding Defense M&A Activity? [View article]
    There have started to be some small movement as companies look at the changing defense market. SAIC (SAI) splitting themselves for example and BAE Systems trying the EADS route and then selling off a part. This might accelerate as sequestration gets closer.
    Oct 18, 2012. 09:18 AM | Likes Like |Link to Comment
  • Lockheed Martin And Oshkosh Stand To Gain As Pentagon Takes Next Step In Humvee Replacement [View article]
    Original reports were 5 bids from AM General and GD temaed, BAE Systems and Ford teamed, Lockheed, Oshkosh and Navistar. I will double check info form back in March.
    Aug 29, 2012. 12:59 PM | Likes Like |Link to Comment
  • Lockheed Martin And Oshkosh Stand To Gain As Pentagon Takes Next Step In Humvee Replacement [View article]
    Sorry. It is a bug of the stock link. I tried to fix it. LSE = London Stock Exchange in this case as BAE Systems is traded there. The stock ticker LSE is not part of the story.
    Aug 28, 2012. 10:58 AM | Likes Like |Link to Comment
  • Lockheed Martin And Oshkosh Stand To Gain As Pentagon Takes Next Step In Humvee Replacement [View article]
    Thank you for reading. I don't foresee much fluctuation in the LMT price until the future budget plans are firmed up.
    Aug 28, 2012. 10:17 AM | Likes Like |Link to Comment
  • SAIC Continues To Expand Its Healthcare IT Business [View article]
    Thank you for reading. Many government contractors have had programs where cost and schedule exceeded initial plans. SAIC's biggest issue recently was their contract with New York City to build a timekeeping system.
    Aug 8, 2012. 08:05 AM | Likes Like |Link to Comment
  • Military Contracts Pushed Oshkosh Over A Rough Patch [View article]
    Thank you. I appreciate the information. I will update the article.
    Jul 31, 2012. 01:30 PM | Likes Like |Link to Comment
  • SAIC Continues To Expand Its Healthcare IT Business [View article]
    Thank you. I will submit a correction request.
    Jul 23, 2012. 11:45 AM | Likes Like |Link to Comment
  • Congressional Budget Calls For Delay In Buying The Joint Strike Fighter; Sell Lockheed Martin [View article]
    The F-22 is not a candidate. The costs to restart production are too high. The only advanced, new production fighter aircraft being built for U.S. are the F/A-18 and F-35.

    GD is not part of LMT and still produces the F-16. Martin Marietta merged with Lockheed in the 90's and McDonnell Douglas became part of Boeing.
    Jul 12, 2012. 09:41 AM | 1 Like Like |Link to Comment
  • Congressional Budget Calls For Delay In Buying The Joint Strike Fighter; Sell Lockheed Martin [View article]
    Based on recent history the F/A-18 would be the choice to replace the delayed F-35 orders for the Navy and Marine Corps. There has also been discussion of buying the F/A-18 for the Air Force. The F-15 and F-16 lines are still hot for FMS.

    Lockheed may see the revenue if the final quantity of F-35 are purchased. There has been no cut yet to the acquisition objective just pushing the quantities out past the current budget. This means they will still have to be bought in the 2019-2026 timeframe.
    Jul 12, 2012. 09:12 AM | Likes Like |Link to Comment
  • Will Airbus's Move To Alabama Help Spirit Aerosystems (SPR)? [View article]
    Thank you for reading. Yes, there are a lot of advantages for European firms to locate in the U.S. Turbomeca has invested in parts and repair facilities to support their engines for example.
    Jul 10, 2012. 08:53 AM | Likes Like |Link to Comment
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