General Dynamics

  • Three Military Giants Poised to Overcome Sequestration

    By Delian Naydenov - August 6, 2013 | Tickers: GD, LMT, RTN

    Due to the Budget Control Act of 2011, more commonly known as sequestration, military spending is declining. Despite this decline, U.S. defense-related spending is well above $1 trillion with all of the largest programs having material accounting weaknesses according to their auditors. The three largest defense-related areas in the U.S. budget are:

    • Department of Defense, or DoD – $574 billion in fiscal 2013 (including sequestration of $40 billion);

    • Veterans more »

  • Two Aerospace Names to Buy, One to Sell

    By Zain Abbas - July 12, 2013 | Tickers: ERJ, GD, COL

    Demand for aerospace products is on a rise according to different sources. By sources I mean, suppliers of raw materials like aluminum companies, supplier of jet parts and the final manufacturers like Boeing and Airbus.

    However, improving industry fundamentals do not mean that every company in the industry is a name to buy. You will always find a wide variety of companies in a similar industry. The source of difference more »

  • The Market Wants to Break up With Textron

    By Matthew Luke - July 8, 2013 | Tickers: GD, NOC, TXT, BA, UTX

    The market has made its feelings clear. It wants to break up. Over the past couple of years, we have witnessed many high-profile corporate breakups that have been great success stories. There was the Fortune Brands breakup into Beam and Fortune Brands Home & Security in 2011, the Kraft Foods breakup into Mondelēz International and Kraft Foods Group in 2012, and the Abbott Laboratories and AbbVie breakup on January 1 of more »

  • Billionaire Israel Englander’s New Stock Picks

    By Meena Krishnamsetty - June 27, 2013 | Tickers: AET, ABV, EXPD, GD, VMED

    Millennium Management, a hedge fund managed by billionaire Israel Englander, filed its 13F for the first quarter of 2013 with the SEC in May. This most recent round of filings disclosed many of hedge funds’ long equity positions in U.S. stocks as of the end of March. Even with the information being somewhat old, we’ve found that the most popular small cap stocks among hedge funds outperform the more »

  • The Effects of Budget Cuts on Defense Companies

    By Vanina Egea - June 24, 2013 | Tickers: GD, LMT, RTN

    The House Appropriations Committee approved a couple of days ago the fiscal 2014 bill, which provides $512.5 billion in non-war funding and highlights a $5.1 billion decrease compared to fiscal year 2013. Lobby efforts by some defense contractors were not enough, and this new budget could hurt sales and growth in the sector. For the time being, companies are not fully experiencing the impact this could have, but more »

  • This Aerospace Conglomerate Will Thrive in the Economic Recovery

    By Matthew Frankel - June 18, 2013 | Tickers: GD, TXT, UTX

    Textron (NYSE: TXT) is an aerospace conglomerate that manufactures airplanes, helicopters, and a variety of other products, with some well-known brand names among its product portfolio. Since taking a big revenue hit as a result of lower discretionary spending brought on by the financial crisis, Textron’s sales have been steadily climbing and the company has been increasingly more profitable every year since then. With some of their key business more »

  • 3 Aerospace Companies to Buy

    By Madhukar Dubey - June 17, 2013 | Tickers: GD, LMT, NOC, TXT

    The U.S. is the world's largest aerospace and defense market. But recently, there was a cut in the military budget from $531 billion last year to $525 billion this year. The decline in the budget has reduced the backlogs of various aerospace and defense companies. Hence, some companies have planned new and enhanced products to maintain market share.  Here are 3 that are particularly interesting. 

    New orders

    Textron more »

  • 3 Contractors In The Aerospace & Defense Industry With Attractive Prospects

    By Damian Illia - June 11, 2013 | Tickers: GD, RTN

    A system is created when independent parts come together, to form a whole; and the U.S. defense system is no exception. Several defense contractors unite and create better prospects for each other, mainly on the back of the Department of Defense (DoD).

    Let’s say the US government cuts the defense budget via-Sequester, and focuses its few remaining efforts on the Gerald R. Ford-class aircraft carrier. Aircraft carriers more »

  • This Defense Stock Could Benefit Shareholders in the Near Term

    By Anh HOANG - June 10, 2013 | Tickers: GD, LMT, NOC

    In the middle of May 2013, Northrop Grumman (NYSE: NOC) announced that it intended to repurchase as much as 25% of its total shares outstanding in the next two years. Charlie Munger often advises investors that one of the three things that make investors become successful is investing in cannibals (the companies that keep “eating” themselves. Thus, if Northrop repurchases its shares, its EPS will accelerate and the stock price more »

  • Driving Forward in the Tank Industry

    By Callum Turcan - June 7, 2013 | Tickers: GD, LMT, NOC

    The Bradley Infantry Fighting Vehicle has been in service since 1981 as the United States' go-to ground combat vehicle (GCV).

    BAE systems has a subsidiary in the US which has made these vehicles for the Gulf War and the Iraq/Afghanistan Wars and hopes to continue to do so with Northrop Grumman (NYSE: NOC) as its partner for the next ground combat vehicle. BAE and Northrop are competing against General more »

  • Perpetual War Is Coming, Are You Ready to Profit?

    By Joshua Bondy - June 4, 2013 | Tickers: GD, NOC, BA

    1984 is famous for describing perpetual war; an un-winnable, but ever-present conflict. In the Second World War the globe saw total war throughout every continent. Nation's entire economies and societies reoriented themselves around military objectives. Now, the world is slowly entering into a new stage of less obvious, but perpetual conflict through drone warfare. A number of military contractors are setting themselves up to benefit from this new system more »

  • Boeing Continues to Soar Higher

    By Dave Zaegel - June 4, 2013 | Tickers: GD, LMT, NOC, RTN, BA

    For a time, it seemed as if Boeing (NYSE: BA) was in big trouble. Its new commercial airline product, the 787 jetliner, was grounded, and the U.S. Government sequestration threatened to cut into its defense segment's profits. But, those fears are yet to materialize into something terrible.

    The result? A much higher stock price. Boeing shares hovered around $75 earlier this year on these fears. Now, the stock more »

  • General Electric versus Two Alternatives

    By Nur Tarkak - May 29, 2013 | Tickers: BRK-A, GD, GE, GSK

    General Electric (NYSE: GE) steadily pays out dividends to its shareholders. The payout amount has been increasing year over year for three years in a row. The annualized dividend paid to the shareholders in 2010 was $0.46 per share, but the company raised the annualized dividend in 2011 by 32.6% to $0.61 per share. The dividends got a further boost in 2012, to $0.70 per share more »

  • This Company Looks to Return Capital to Shareholders in a Big Way

    By Mike Thiessen - May 27, 2013 | Tickers: GD, NOC, BA

    Despite lingering fears over cuts to the U.S. defense budget and the predicted cyclical slowdown in the heavy equipment industry, Falls Church, Va.-based Northrop Grumman (NYSE: NOC) recently announced two definitive moves that will return capital to its shareholders and could boost its stock price over the long term. The first involves the expansion of a share repurchase program that will eventually authorize the buyback of $5 billion more »

  • Hedge Fund Gruss Asset Management’s 5 Largest Equity Holdings: A Q1 Recap

    By Meena Krishnamsetty - May 23, 2013 | Tickers: BP, CBS, FMCN.DL, GD, LMCA

    Gruss Asset Management is a financial investment advisory firm headquartered in New York with an estimated $2.4 billion of assets under management. It is managed by Howard Guberman. The fund recently filed its 13F with the SEC, describing some of its main investments during 2013’s first quarter. A quick look at the top five equity positions of this new hedge fund might be a good starting point for more »

  • Should Investors Be Happy About An Additional $4 Billion Share Buyback?

    By Nick Chiu - May 22, 2013 | Tickers: GD, LMT, NOC

    Northrop Grumman (NYSE: NOC), a leading global security company, is buying back an additional $4 billion of the company's common stock, totaling the authorized share repurchase amount to about $5 billion, which is near 27% of the current market cap of $18.58 billion as of May 16, 2013. Northrop plans to retire about 25% of its shares outstanding by the end of 2015. The company will use its more »

  • The Best War Fueled Dividends

    By Joshua Bondy - May 20, 2013 | Tickers: GD, LMT, RTN, BA

    Even with defense spending cuts, the outlook for U.S. military contractors is not entirely negative. America has recently woken up to the fact that China is growing as a military power. With a 2012 GDP of $12.38 trillion, China is growing an economy to support a new American rival. Anti-China U.S. military spending will support defense contractors and help to ensure their dividends. 

    <img alt="" src="http://media.ycharts.com/charts/7086ef6c02672b515ace50a3a1743755.png" />

    RTN Dividend Yield data more »

  • Top 5 Dividend Companies of Warren Buffett

    By Karin Hernandez - May 20, 2013 | Tickers: COP, GCI, GD, GE, GSK

    TheStreet.com recently ran an article outlining five companies that Warren Buffett holds in his portfolio that yield 3% or better. I decided to take a look at these five companies, since I love dividend companies, and to some degree I love Warren Buffett. (I like to read what he is doing, but I don’t own any of Berkshire Hathaway’s stock.)

    I’ve been writing about dividend stocks more »

  • Will Defense Cuts Affect Raytheon et al?

    By Shas Dey - May 13, 2013 | Tickers: GD, NOC, RTN

    Despite military cutbacks, the country’s top defense contractors reported earnings better than analyst estimates. This indicates that these companies have been able to shrug off the effect of the military cuts until now. But there are concerns that the worst is yet to come and companies are resorting to various initiatives like cutting costs, restructuring and seeking alternative markets.

    Raytheon (NYSE: RTN) is one of the top defense contractors more »

  • China Is Building Its War Machine: Part 2

    By Reuben Brewer - May 10, 2013 | Tickers: GD, TXT, BA

    China is confident enough after having worked on one aircraft carrier to signal that it intends to ramp up production with bigger and better versions. That's a concerning sign since tensions with neighbors has been increasing. The U.S. military/Industrial complex could be long-term winners.

    Bulking Up

    Bloomberg reports that China's defense spending has more than doubled since 2006. A huge increase that shows just how important more »

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