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Defense sector has done well over the last couple of years, but where is it headed with upcoming Ukraine talks and the prospects for ceasefire? Any specific fund or stock buy/sell ideas?
Ukraine talks without Zelenskyy is a comical farce. The Orange Criminal Farce is pushing the EU to do more on their own. EU defence stocks are already running higher. You might chase that wave. If I had a mind to invest in defense stocks, I'd steer clear of Boeing. Political junk is pushing other countries (like Spain, I just was reading) to buy Swedish military jets, rather than US-made ones. Canada is busy stepping-up its game, too--- so that it is not so dependent upon US goodwill; because there just isn't much goodwill at the gummint level. Check out Bombardier. BDRAF ticker. ******************* "Bombardier Defense was established in 2022, reflecting the company’s strategic expansion of the unique aircraft solutions it has been providing for decades to special mission operators around the world. The expanding portfolio of services ranges from urgent humanitarian assistance, head-of-state transport to airspace calibration, infrastructure validation and battlefield and border surveillance." https://defense.bombardier.com/en
@Crash Really nice jump for Bombardier in July. Alas, I am generally leery of buying individual stocks after a big move. Also, after brief research, it looks like the stock nearly doubled in the runup to / after a major order. But while the order was indeed big at $1.7B, the market cap has gone up $5B+... Is there more to it that I've missed?
@rforno What is your outlook for European defense & aerospace going forward (especially, if we get a ceasefire or some other hostilities reprieve in Ukraine)?
@rforno What is your outlook for European defense & aerospace going forward (especially, if we get a ceasefire or some other hostilities reprieve in Ukraine)?
I think the EU is going to ramp up defense spending going forward b/c 2025 has likely confirmed they can no longer trust/count on US policies, government, technology, or security committments. Germany already announced a HUGE defense spending plan, so .... we'll see.
Allies need to get serious re: aid to Ukraine, need to give Zelenskyy enough to WIN, not just to survive, barely. That goes for the US and Europe and whoever else. Putin's got the manpower, but he's not afraid to waste it. "Cannon fodder." The Allies need to make Putin feel the hurt. Remember the international volunteers during Spanish Civil War? Are there any int'l vols coming forward to assist Ukraine--- on the water or on the land or in the air? (And remember the Ukrainians' response to that very first provocation? The Russians demanded the Ukes surrender their installation on the shore of the Black Sea.)
Saab must be bought on the Stockholm Exchange. BAE Systems is British. 1.8% div. yield. But watch out for the taxes taken before you see any of it. I know you said you don't prefer single-stocks, @yugo. Ticker is BAESY. https://www.stockrover.com/quotes/insight/summary/Quotes/q_BAESY
Comments
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"Bombardier Defense was established in 2022, reflecting the company’s strategic expansion of the unique aircraft solutions it has been providing for decades to special mission operators around the world. The expanding portfolio of services ranges from urgent humanitarian assistance, head-of-state transport to airspace calibration, infrastructure validation and battlefield and border surveillance."
https://defense.bombardier.com/en
https://www.barrons.com/market-data/stocks/bdraf?mod=searchresults_companyquotes&mod=searchbar&search_keywords=bdraf&search_statement_type=suggested
https://www.stockrover.com/quotes/insight/summary/Quotes/q_BDRAF
HQ in Montreal.
(The chart shows a huge ramp-up just in 2025. But there is no dividend offered, currently.)
Saab must be bought on the Stockholm Exchange.
BAE Systems is British. 1.8% div. yield. But watch out for the taxes taken before you see any of it. I know you said you don't prefer single-stocks, @yugo.
Ticker is BAESY.
https://www.stockrover.com/quotes/insight/summary/Quotes/q_BAESY
Fidelity Select Defense & Aerospace FSDAX appears to be the big dog in the OEF world, up 37.7% YTD but with only 6.3% in non-US equity.
ITA - iShares U.S. Aerospace & Defense ETF up 35.2% YTD
PPA - Invesco Aerospace & Defense ETF up 27.5% YTD
And one more:
Top 10 Aerospace and Defense Companies in Europe in 2021 by Revenue
Certainly beats 3% YTD in a money market fund. (TIC)