Lightway

Are Defense and Aerospace Stocks Good Stocks to Own?

Great comment on asymmetrical warfare - I had no idea that Lockheed Martin was one of the companies primed to head up the new command.

Cyber attacks will become more of a reality. This is the equivalent of international piracy and terrorism in cyberspace. There are robust gangs out there already operating on huge scales, and the reality is that governments will hire out these gangs through impossible to trace backchannels, much in the way governments have hired out terrorist groups to do dirty work.

The attacks in Estonia, which nearly shut the entire country down, are a preview of things to come:

en.wikipedia.org/wiki/...


On Jun 06 04:48 PM Dmseaman wrote:

> How could you leave out Lockheed Martin, they are the best of the
> bunch and they are clearly primed to be at the head of the class
> for the new Cyber Security Command that is being stood up as we speak.
> The Cold War and it's big ticket weapons systems are "easier" targets
> for defense cuts. Asymetric warfare is mcu less profitable, but cyber
> security that's where you drive those margins! And this battlefield
> has only begun to take shape, once again sadly America is late to
> the game so our answer will be to out spend our adversaries. This
> is what will drive the defense industry for years to come, and LMT
> is in a great position to benefit from mulitbillion dollar contracts
> that will be rolling out of Congress in the years to come.
>
> Disclaimer, following LMT waiting on a pullback around $74.85

Are Defense and Aerospace Stocks Good Stocks to Own?

Yes, but I believe this is because Obama actually put the money that went towards the special appropriations bills (pretty much the entire amount for the extension of funding in Iraq and Afghanistan), into the actual budget.

Previously, this amount was being spent, it was just off of the budget books. Placing it on the budget gives it visibility and accountability.


On Jun 04 11:08 AM Vaun wrote:

> "Besides the defense cuts because of the deficits and the Democratic
> administrations/Congre... "
>
> The defense budget was raised this year. Check your facts.

Are Defense and Aerospace Stocks Good Stocks to Own?

Thanks for the analysis. I have wanted to look at this sector for the longest time, but didn't really understand these companies well enough and how they fit into the bigger economic picture. UTX seems to be the most diversified.

My concern with this sector is the possibility of decreased spending over the next few years, due to the exit from Iraq and the administration's goal of bringing down the deficit. I am going to assume that defense spending will get some big cuts.