Did we see capitulation in DE and RTN today? These stocks look to be unfairly beaten up. An Ag play and a defense stock (with Israel promising to shoot RTN missiles at Iran at any moment, and hundreds more million dollar cruise missiles aimed at Tehran on our three carrier groups over there). Both seemed to hit lows on big volume on the 5 to 6 month charts. Anyone else thinking along these lines?
Wasn't capitulation, some construction equipment company came out and said they are noticing a global slowdown in construction spending. I am too lazy to look up the name of the company.
The success of RTN has nothing to do with Israel pointing rockets at Iran. That having been said, RTN is a participant in the FCS ( Future Combat System ) and will benefit from the $160 billion dollar program which was just accelerated by 3 years, from 2014 to 2011. Joe Nadol of JPM just recently upgraded the stock from Neutral to Overweight on June 24th. Nadol is looking for revenues to grow by 8% in '08 and 7% in '09. JPM likes defense in general and believes that the group is relatively safe from economic weakness/uncertainty and has been sold out during the month of June. Looks like decent support in the $55-$54 area from last August.