Defense stocks hit new highs

I wonder how much of John Key’s $50 mill. are invested in these companies.
Or in Rio Tinto, or some of the other big Corporations currently vying for NZ resources (Exxon, Shell etc).
And I also wonder if Kiwi’s want to elect a man who may not wish to defend NZ’s best interests but instead those of his Corporate buddies. Let’s remember that John Key’s nickname in the bankers world was the “Smiling Assassin”.

Sep. 26, 2007 (Thomson Financial delivered by Newstex) –

WASHINGTON (AP) – Defense stocks on Wednesday hit new highs as Defense Secretary Robert Gates requested an extra $42 billion in funding from Congress to cover military costs in Iraq and Afghanistan in 2008.

The AMEX Defense Index, which tracks 14 major defense company stocks, rose 14.25 to a high of 1,686.72 in afternoon trading. Since last year, the index has risen roughly 47 percent, outperforming the broader S&P 500 index, which has climbed nearly 15 percent over the same period.

Although the anticipated request for more funding does not come as a surprise to Wall Street, the Pentagon’s message nevertheless reinforces the idea that defense spending will remain high in the near-term, said Myles Walton, a CIBC World Market Corp. analyst.

Gates and Peter Pace, the soon-to-retire chairman of the Joint Chiefs of Staff, said in prepared testimony before the Senate’s appropriations committee that additional funding will include $11 billion to buy another 7,000 mine-resistant, ambush-protected vehicles on top of the 8,000 vehicles already on order, and $9 billion to provide new equipment and technology.

Among the defense companies likely to benefit from additional wartime spending are: Force Protection Industries Inc., General Dynamics Corp. (NYSE:GD) , Ceradyne Inc. (NASDAQ:CRDN) and Oshkosh Truck Corp. (NYSE:OSK)

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  1. Pingback: Syrupjib.Com » Defense stocks hit new highs

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