The PM has announced a new defence spending program with £16.5 billion of extra cash:
https://news.sky.com/story/boris-johnso ... t-12136302
This includes many goals including:
UK rocket launches from Scotland by 2022
Creation of a Space Force
Increase in cyber military capability
etc etc
If this happens who might benefit from this spending, what companies etc.?
Regards,
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Opportunities in new defence spending
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- Lemon Half
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- The full Lemon
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Re: Opportunities in new defence spending
The usual suspects: I hold Raytheon, General Dynamics, Lockheed and Northrop Grumman.
Every time there is an escalation of tension somewhere like the Middle East, these shares get a nice bounce. I will hold forever because war never goes out of fashion.
There are also defence ETFs out there for those who like the theme.
Every time there is an escalation of tension somewhere like the Middle East, these shares get a nice bounce. I will hold forever because war never goes out of fashion.
There are also defence ETFs out there for those who like the theme.
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- Lemon Quarter
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Re: Opportunities in new defence spending
BAE systems up 2% today, 28% up on 29 October. Maybe news was leaked, known about, as suspicious up a third over 2-3 weeks prior to announcement.
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- Lemon Half
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Re: Opportunities in new defence spending
Adamski wrote:BAE systems up 2% today, 28% up on 29 October. Maybe news was leaked, known about, as suspicious up a third over 2-3 weeks prior to announcement.
That looks very close to cherry picking the rise since the lowest recent point on the BAE chart.
Why be that specific? Let's say a month, during which time the wider market has jumped significantly on the back of vaccine news. Looked that way the FTSE100 is up 7.5% whilst BA. is up about 5.5%
If you want to have suspicions about possible leaks you might wish to consider a period of a week, or less. BA. may be up on such a timescale against a generally lower market, but by a much lower quantum than you suggest I would say.
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- The full Lemon
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Re: Opportunities in new defence spending
dealtn wrote:If you want to have suspicions about possible leaks you might wish to consider a period of a week, or less.
Leaks and insider trading are usually manifested in increased options activity and a skewed put-to-call ratio.
Options are the best way of making a short-term directional bet on a share, whilst laying out and risking the minimum capital. Less transparent as well.
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- Lemon Half
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Re: Opportunities in new defence spending
More details on the UK defence direction and spending:
https://www.thesun.co.uk/news/14356304/ ... rce=pushly
Regards,
https://www.thesun.co.uk/news/14356304/ ... rce=pushly
Regards,
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