Posted by morton13 on 17th of Sep 2014 at 08:33 am
The defense contractors are on the move because there is talk in
Congress about removing the budget constraints put on them in the
sequestration effort last year. Makes sense, since we seem to have
declared war again, and there are credible analysts who argue the
U.S. will be entangled in fighting in the Middle East for another
decade.
None of the pure defense stocks are cheap on an intrinsic value
basis, but there are so few of them that when all fund managers
decide to own them they have to bid up the shares -- plain and
simple, economics 101. One of the few that is a little undervalued
is L3 Communications(LLL), and it has mounted a
furious rally from a gap-down low hit in July.
Honeywell
(HON), which makes avionics for advanced aircraft, is genuinely
cheap, about 45% undervalued according to the Parallax model. HON
is being held back by its construction-related business, but that's
probably temporary.
Boeing(BA) is not cheap, but after being grounded
this year it should be ready to take off before long too.
Posted by morton13 on 17th of Sep 2014 at 08:40 am
NASA awarded a $6.8 billion contract to Boeing (BA +0.80%) and
SpaceX, of which Boeing will receive $4.2 billion, and SpaceX will
receive $2.6 billion, for the commercial flight of astronauts to
the International Space Station
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Boeing IH&S
Posted by brophy on 17th of Sep 2014 at 07:09 am
http://stockcharts.com/h-sc/ui?s=BA&p=D&yr=1&mn=0&dy=0&id=p14699394739&a=367832746&listNum=24
Thanks for setup and information
Posted by steve on 17th of Sep 2014 at 08:48 am
Thanks for setup and information on BA
I like it also....from my morning newsletter
Posted by morton13 on 17th of Sep 2014 at 08:33 am
The defense contractors are on the move because there is talk in Congress about removing the budget constraints put on them in the sequestration effort last year. Makes sense, since we seem to have declared war again, and there are credible analysts who argue the U.S. will be entangled in fighting in the Middle East for another decade.
None of the pure defense stocks are cheap on an intrinsic value basis, but there are so few of them that when all fund managers decide to own them they have to bid up the shares -- plain and simple, economics 101. One of the few that is a little undervalued is L3 Communications(LLL), and it has mounted a furious rally from a gap-down low hit in July.
Honeywell (HON), which makes avionics for advanced aircraft, is genuinely cheap, about 45% undervalued according to the Parallax model. HON is being held back by its construction-related business, but that's probably temporary. Boeing(BA) is not cheap, but after being grounded this year it should be ready to take off before long too.
of course the will help Boeing too!
Posted by morton13 on 17th of Sep 2014 at 08:40 am
NASA awarded a $6.8 billion contract to Boeing (BA +0.80%) and SpaceX, of which Boeing will receive $4.2 billion, and SpaceX will receive $2.6 billion, for the commercial flight of astronauts to the International Space Station