This idea was triggered by Zach Schreiber of PointState Capital who offered a pick at Robin Hood Investor Conference. Schreiber was the Druckenmiller protege who recently shorted crude oil and made a billion dollars.
$FINMY Finmeccanica of Italy, is a 30% state owned industrial, aerospace and defense giant with 50,000 employees and 100 offices globally, kind of an Italian GE or UTX to oversimplify it. In fact the CEO Mauro Moretti seems to have pulled off a “G.E.” and has dumped non-core businesses in order to focus on aerospace and defense. The company is contemplating a name change as part of modernizing its brand but that seems pointless given the significant name recognition in industrial, aerospace and defense circles. What is NOT pointless was Schreiber’s estimate that this giant would double in size in a just a couple of years.
Inspired by reading about Finmeccanica, I did a quick scan for other aerospace/defense plays that were also going up.
$DASTY Dassault Systemes
$LMT Lockheed Martin
$RTN Raytheon
$NOC Northrup
$OA Orbital ATK
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Of course they’re doing well – that’s what 1 1/2 years of live-testing their latest in weaponry in Iraq and Syria will do and not only that, with this Paris terror, the future for such is endless. Obama is indeed god’s gift to defense stocks; the military-industrial complex has him by the balls and has him brainwashed.
Every terror event, every sortie, every bomb dropped, is another uptick in all these stocks.
Yes, it’s Eisenhower’s military-industrial complex playing out. Instead of cnbc, you’ll be watching CNN/C-SPAN for price action.