Defense contractors

[Spekulatius]

Always curious how these downgrades work. Seems to be based more based on pure momentum than anything else. This time $CACI:

 

Edited December 12, 2024 by Spekulatius

[lnofeisone]

5 hours ago, Spekulatius said:

Always curious how these downgrades work. Seems to be based more based on pure momentum than anything else. This time $CACI:

 

I, too, wonder how these downgrades work. CACI is probably the more interesting play here because roughly 30% of their revenue is up for re-compete in the next 2 years + some major deals are coming down the pipeline where they dominate. I doubt GS tracks it that close but who knows.  

[Spekulatius]

Bought a few shares of Thales, the French aviation electronics/ defense and security company. Looks quite cheap here ~13x earnings with good visibility for growth the next few years.

 

The stock came down due to the investigation announced in November 11/20 which sounds like it could be an export control violation, but hard to know.

Edited January 6 by Spekulatius