Defense Stock #1 – ITT Corporation (ITT)
ITT Corporation is a large, diversified industrial company with significant exposure to the defense segment. One of the reasons war expenditures
increase exponentially during conflict relates to supply costs. It takes big bucks to field an army, especially when the battles are so far away from
home. Essentially an entire industrial complex must be duplicated in order to effectively fight the battle.
ITT Corporation (ITT) has benefited greatly from providing the goods for a well-equipped military.
ITT has performed better than its peers, as the new administration promised to keep troops in place for the short term. The chess pieces may be moved,
but the number of troops is likely to stay at a war level.
The number of troops overseas may be changing, however, as evidenced by the internal debate on Afghanistan. The do-more-with-less crowd may be the
winner here and if so, we will see fewer men and women abroad. As a result, supply needs will drop precipitously, and ITT is likely to suffer.
5 Defense Stocks to Sell Now
Article printed from InvestorPlace Media, http://investorplace.com/2009/10/obama-defense-stocks-to-sell/.
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