“There’s no question the Chinese are not telling the entire story [about the coronavirus],” our first reader says.
“The actual numbers are at least three times more than Beijing reports, and it begs the question, how many more are being exterminated to contain the virus?”
That’s just dark.
On a much, much lighter note, a reader says: “I guess I’m sharp-eyed too.
“I questioned your use of ‘feeder readback’ Friday, but assumed you did it on purpose to get people’s attention, to emphasize that your format’s changing.
“I thought it was a clever way to focus subscribers on what you were saying. No ‘murther fistakes,’ OK?”
We weren’t that clever, but it did get your attention. A happy accident. Pobody’s nerfect…
Thanks for the lighthearted email to tee up the weekend.
Your Rundown for Friday, Feb. 7, 2020
This morning we read this headline at Bloomberg: “Army Restarts Disputed $45 Billion Armored Vehicle Competition.”
The Army redoubled its efforts Thursday to replace the Bradley Fighting Vehicle — circa mid-1980s — after spending $23 million on a project for a new ground combat vehicle.
And then scrapping it. (Our tax dollars at work.)
Officially, the project for the “Optimally Manned Fighting Vehicle” was put on hold after “the service acknowledged its requirements were too hard for [the] industry to meet,” Bloomberg says.
In fact, only one defense contractor’s bid passed muster, and that was from General Dynamics Corp (GD). Since the Army must give consideration to multiple bids, the military branch is reworking specs for the ground vehicle contract.
But that was enough to attract our attention to GD stock.
General Dynamics announced Q4 earnings on Jan. 29; while earnings were a mixed bag for defense contractors Raytheon and Northrop Grumman, GD topped estimates with a 12% increase in revenue. Since the end of January, GD shares have rallied almost 6%.
We’re going to stick our neck out to say we think GD has a fighting chance to win the Army’s $45-billion contract. Here’s why…
For starters, the president was acquitted of impeachable offenses by the Senate, and the Democrats — what a sideshow right now.
Barring some “hail mary”-type event, Trump’s going to win a second term. (The economy’s too good right now; if things go sideways, then we’ll talk.) And Trump won’t cut defense spending.
Second, a ground armored vehicle is right in General Dynamics’ wheelhouse: “General Dynamics is a top provider of land weapons, building Abrams tanks, the Stryker family of vehicles, and Light Armored Vehicles,” according to Investor’s Business Daily.
With a consensus price target for GD stock at $202.89, we agree it’s a “buy.” And a $45-billion contract can’t hurt.
Market Rundown for Friday, Feb. 7, 2020
S&P 500 futures are down 13 points to 3,332.25.
Oil’s down 1.4% to $50.24 for a barrel of WTI.
Gold’s up $2.40 per ounce to $1,572.40.
Bitcoin is up $40.88 to $9,771.00.
We hope you have a wonderful weekend. More Monday…
For the Rundown,