This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"The GOP is traditionally known as the party that spends more on defense; thus, if McCain wins the election, one stock to benefit would be defense firm General Dynamics (NYSE: GD)," says John Reese, editor of Validea, which follows the strategies of "legendary" investors such as Warren Buffett and Peter Lynch.
"While McCain has talked tough about reforming the defense budget
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
Based on their campaign promises and party platforms
General Dynamics operates through four business groups: aerospace, combat systems, marine systems and information systems and technology. The way I see it, the sum of these parts is greater than the whole.
The aerospace division consists of Gulfstream business jets and accounted for 18% of the company’s sales in 2007. I believe investors have some doubts about whether the pace of private jet sales can be sustained in an economic downturn. Although the company’s backlog extends past 2010, investors are likely to react more strongly to new orders than to shi
General Dynamics Corporation provides business aviation; combat vehicles, weapons systems, and munitions; shipbuilding design and construction; and information systems, technologies, and services. The company operates through four segments: Aerospace, Combat Systems, Marine Systems, and Information Systems and Technology. The Aerospace segment designs, manufactures, and services mid-size and large-cabin business-jet aircraft for corporate, government, and individual customers. The Combat Systems segment offers wheeled armored combat and tactical vehicles; tracked main battle tanks and infan...
When it comes to defense spending over the last nine years, there has not been any rest. As I have reported on numerous occasions, the defense sector has beaten the market indices year after year. This year is no exception and two of my recommendations remain ahead of the market and are reporting new contracts every day.
Today, theThe Arizona Republicreports [registration required] that General Dynamics (NYSE: GD) is to
TTM Technologies (TTMI) manufactures printed circuit boards for the high-end commercial and aerospace/defense markets. The company focuses on a “quick-turn” model that can provide custom-fabricated PCBs to customers within as little as 24 hours. This strategy allows TTM to charge a premium for quick-turn services (which account for 15% of total revenue) and insulates TTM from the extreme cyclicality faced by most electronics manufacturing services (EMS) providers. In the last 10 years, the company reported just one year of net losses (2002).
Last year, my best Chasing Value recommendation was Aluminum Corp of China ADS (NYSE: ACH), which sailed from $22 per share to a 52-week high of $90.95. I will take credit for finding a winner, but I cannot in all honesty say that I thought it would more than quadruple -- that part was luck. (The original story was Chasing Value: Aluminum Corporation of China ADS, which I still think is worth a read today.)
If you acquired what is often referred to as Chalco (China Alu
General Dynamics (GD) is set to annoint a new CEO this Wednesday. The Street's adoration of outgoing chief Nick Chabraja could spark a selloff of its $90 shares. Buy the dips, Barron's magazine says, because once a new CEO settles in, the markets will quickly realize he's inherited a "well-oiled machine."<!--more-->
"We're going to beat our guidance... in all four [business] segments," Chabraja said during the company's Q1 earnings conference call. Profits during the quarter rose a dynamic 32% to $573 million, and operating margins widened by 1.5% to 12.3%. Even more impressive is GD's $50 b
Sixth largest defence contractor in the world Good management Good reputation Focused on land and sea based weapons which would be useful going forward since the majority of the wars will be low intensity conflicts in remote parts of the world where people have to be on the ground Commodity bull markets are historically associated with wars as people get greedy for hard assets eg Nobody would have given a damn about Saddam if Iraq didn't have oil. Dollar weakness will help exports The current administration still has a lot of time left to award contracts McCain could w...
Chinese president Hu Jintao recently visited the U.S., and some saw it as a sign that China is ready to do more business and with the U.S. However, Jim mentioned about a Wall Street Journal article saying that China is boosting its defense spending. The article said the Chinese military could outpace America's military in the years ahead, specifically in terms of submarine might. This is a great play.
Of all the defense companies, Jim likes General Dynamics because it reported a "magnificent quarter," and he sees a lot of growth for the company.
Not only is the U.S. government buying ...
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About General Dynamics Corp
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When it comes to defense spending over the last nine years, there has not been any rest. As I have reported on numerous occasions, the defense sector has beaten the market indices year after year. This year is no exception and two of my recommendations remain ahead of the market and are reporting new contracts every day.
Last year, my best 
"We're going to beat our guidance... in all four [business] segments," Chabraja said during the company's 
