+ Watch HII
on My Watchlist
Huntington is in the nuclear aircraft carrier- and submarine-building business and is the sole supplier of nuclear-powered carriers and submarines for the Navy.
This is a short term red thumb based around the impending government shutdown and overall weakness in the defense sector. I think there is a good chance of it falling back below the IPO open price since it's initial pop was on a whole bunch of nothing. My other concerns about the stock are in my blog.
I had a bigger follow up the response post that I tried to bang out a few weeks ago, but I think I timed out while writing it and then it was lost and I was too lazy to re type it. My bottom line thinking on this stock is thus:1. Defense stocks face negative pressure with defense cuts.2. The less diversified companies that are most dependent on the defense budget, like HII, will perform the worst3. HII doesn't currently pay a dividend to help bouy up it's share price4. HII currently trades at a slight P/E premium to other stocks in it's peer group.5. Given 1-3 above, 4 makes no sense to me = red thumbHere's your catalyst for HII to go up long term: http://en.wikipedia.org/wiki/Future_Chinese_aircraft_carrierIn 2015-2016 China is expected to have it's first fully functional aircraft carrier. The concept of china with the force projection capabilities of a carrier battlegroup of it's very own will cause a lot of people in the defense department to pee their pants. The desire to stay ahead of China in naval technology/power will ensure HII plenty of work down the road... so in 2015-2020 I expect good things from this stock. Right now though... red thumb.
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