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Defense stocks higher even as big military budget cuts proposed

  • The Pentagon announces plans to shrink the U.S. Army to pre-WW II levels - to fewer than 450K from the current 520K - in order to meet 2015 spending caps.
  • Also planned for elimination is the Air Force's fleet of A-10 Warthog close air support planes - a change some influential lawmakers are expected to oppose - to ensure continued funding of Lockheed Martin's (LMT +1.7%) new long-range F-35 bomber and a new aerial refueling tanker.
  • Nevertheless, top defense stocks are solidly higher, presumably because the Defense Department envisions warfare being waged using enhanced technologies: BA +1.4%, GD +1.5%, NOC +1.9%, RTN +2.2%, HII +0.9%.
Comments (5)
  • joegillam
    , contributor
    Comments (286) | Send Message
     
    I read someplace, just can't remember where; "there will always be wars and rumors of wars". These "defense stocks" are and will generally continue to be solid plays,

     

    Joe In Georgia
    24 Feb, 03:38 PM Reply Like
  • Theta1980
    , contributor
    Comments (3) | Send Message
     
    I think Alexander said that...
    24 Feb, 04:33 PM Reply Like
  • jsteinm1
    , contributor
    Comments (147) | Send Message
     
    LMT (and likely others) is looking over bought at this area. Added more puts today while being long stock.
    24 Feb, 05:05 PM Reply Like
  • joegillam
    , contributor
    Comments (286) | Send Message
     
    Theta,

     

    Try Jesus in Matthew 24, verses 6-7..............Shame on you, I'll pick you up at 9:45 Sunday morning............

     

    Joe In Georgia
    24 Feb, 07:09 PM Reply Like
  • User 12910431
    , contributor
    Comment (1) | Send Message
     
    F35 is not a bomber it is a fighter and is decidedly not "long range"...
    25 Feb, 08:30 AM Reply Like
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