Defense Stock #4 – Alliant Techsystems (ATK)
Fewer wars mean fewer bullets. If you are looking for defense company stocks to sell, start with the ammunition manufacturers. And a leading provider
of ammunition to the military is Alliant Techsystems (ATK).
At the peak of the war mentality administration, ATK traded for approximately $120 per share. Today, with the country moving away from a war footing,
shares trade for $75. ATK makes a ton of money in supplying the military. If not for the distraction of a credit crisis and focus on Wall Street,
citizens might be a bit upset at these huge profits. Surely with making fewer bullets, profits will be negatively impacted.
The only positive for the company is that bullets do not last forever. Like the strategic oil reserve, the military likes to have an inventory of
bullets. Try a billion or more on hand just in case. I suspect the current administration may take exception to such a gaudy number. It is a luxury
instead of a need. With huge deficits such a luxury is likely to be under attack. The landscape is not positive for ATK. Even though some of the selling
has already taken place, there is more downside risk in the stock. I would sell shares.
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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