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The top 10 federal government contractors, whose stocks "will get crushed" if the government...

The top 10 federal government contractors, whose stocks "will get crushed" if the government makes real spending cuts: LMT, BA, NOC, GD, RTN, UTX, LLL, OSK, SAI, BAESY.PK.
Comments (14)
  • And why not GE too?
    Oh, Nevermind.

    3 Jun 2011, 06:53 PM Reply Like
  • REAL spending cuts would take place in the Medicaid department.
    3 Jun 2011, 07:24 PM Reply Like
  • Of course. No way would we want to do any cuts, or even hiring freezes, with our indispensable federal employees, like the highly successful energy department.
    3 Jun 2011, 07:39 PM Reply Like
  • Yeah, F the poor and disabled -- we need to fire up that soylent green program
    3 Jun 2011, 08:48 PM Reply Like
  • Paging Dr. Kevorkian...... Dr. Kevorkian to the Peace and Tranquility room.... Dr. Kevorkian????


    Seriously, I long for the days of Base Closure Commissions and back room deal brokering.


    We can't have public "death panels". Hand out $9,000 dollar Medicare vouchers and let the private sector do that. Get the government out of my health care! (carefull what you wish for).


    We could just go to war with Mexico to keep travel costs down. A stupid comment to go along with the stupid governemnt we've elected.
    4 Jun 2011, 12:51 PM Reply Like
  • The comments are SPOT on on this one. There is headline risk though to those mentoned, particularly those in the advanced fighter programs, perhaps the littoral combat vessels etc. However, BAE would be among the hardest hit, since British firms would likely go first. I'd look at Dyncorp, a few other smaller ones for whom the percentage drop would be substantially greater, all the specialty programs, like UAV makers, etc.


    Seriously, though if Obama can't raise the retirement age to 72, no one can. That alone would save a tril.
    3 Jun 2011, 09:34 PM Reply Like
  • UAV'S will be the last thing to get cut. Way too much "bang for your buck" there.
    3 Jun 2011, 11:20 PM Reply Like
  • I'm arguing from the standpoint of sensitivity of a stock to cuts. I think the UAV makers and similar firms, i.e. blastproofing material, trucks i.e. OSK(?) and a few others have products that once you withdraw from the battlespace, you don't need as many going forward (unless we're going into yet another country), and I would expect that the government has a cancelable backlog of orders. If it goes away, the drop in the stock will be greater than in a RTN or LM. Yeah UAVs won't go away, but order volume can and likely will.
    4 Jun 2011, 03:02 PM Reply Like
  • Why is all the focus on cutting Medicare instead of cutting say 50% off of our bloated military budget?
    3 Jun 2011, 11:06 PM Reply Like
  • Jackson999......that's what I say!!!!
    3 Jun 2011, 11:21 PM Reply Like
  • and why do we still have troops in Japan and South Korea? America just can't afford to be the police of the world any more.
    4 Jun 2011, 11:55 AM Reply Like
  • Amen Brother stone fox! Our guys are a speedbump if the North Kor's decide to move south. (that would also negate the UAV backlog cancellation above Mongie :-)
    4 Jun 2011, 03:04 PM Reply Like
  • The primary thesis needs to be nuanced. The pentagon goal (Gates) is to avoid across the board cuts. So look for bigger cuts in the large platform guys like LM and NOC and smaller cuts in the infantry/UAV areas.
    4 Jun 2011, 02:09 AM Reply Like
  • Presumably the management of these companies knows of the risk and how to deal with them,while we slobs out here just run in fear.


    The time to buy a good company is when everyone hates it.
    4 Jun 2011, 06:07 AM Reply Like
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