Teutonic Knight

Forget GE, These Are the Industrials Investors Should Consider Owning

Alan,

Your article is illuminating and rational supported with facts, numbers and objective analysis. Particulary enlightening is that you dialoged with us interactively. This makes it exciting to read your article and the comments. You're dynamic.

Although you mentioned that you're not an expert in following some of the big Cap defense stocks such as LMT, NOC, GD and BA (the Big 4), I wonder if you could share some thoughts with us, in addition to your observations on their balance sheets, regarding their outlook in the coming 2-3 years, i.e., during the first tenure of the Obama administration.

While there had been relatively muted coverage on Obama's intention on the defense budget, perhaps eclipsed by our pre-occupation with the financial crisis and the debate on that sector, it is my belief (without inside knowledge) that given the current budgetary constraints, defense budget would have to give.

As known, late last year a prominent retired Air Force General took the unusual route of going public to ask Mr. Obama not to cancel the Missile Defense Program, in particular the shield in Europe. With the war winding down in Iraq, combat spending will wane.

So what would be your take of the outlook? Thanks in advance.

Teutonic

[Disclosure: I do not own any defense stockslisted in your article, and I am not in the employ of the defense companies listed in your article as well]