General Dynamics Corp (GD)
The Company's business comprises of business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technologies.
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Budget Cuts....
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no one is buying bizjets for the next few years
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With the war in iraq having an end date in sight, we are not going to purchase more new toys. Yeah, we might be in Afghanistan for a little longer but it is a different war and will not require as much technology. The toys we have right now have been tried and tested and we will not require more advancement.
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senate and congress a bailing on appropriating any new
money. this will continue thru the presidential elections.
Next move will depend on who becomes president.
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CEO transition will hurt stock short term, though great underlying value makes it a long term buy
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Democratic presidential win will doom this stock down to mid forties. Short it!
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The defense sector is seeing cutbacks in all areas except for direct to battlefield systems. Investments in research and development are losing ground and it might be a couple years before that picks up again. Without long term contracts for R&D the whole sector could suffer.
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been watching this in a trading range climbing 6 points oct and same in nov and now flat here in Dec. Dividends were paid Nov 9. They come back in play early Jan. bringing bouyancy for 6 weeks there. Some news also coming on new destroyer contract around that timeframe.
Until then lack of interest brings this one down a bit here. I'm actually looking to dump my shares if I can get low 90's (91) and get back in around 86 ...
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Great long term, however I'm a technical chartist and am short most positions right now including this one. Looks toppy and recently made a 'lower high'. Risk 2%, looking for 10% gain.
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military spending down
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It's a great company, BUT.....
Lots of people have made lots of $ over the past 5 years on GD. As uncertainty about the Dems winning the presidency mounts next year, andthe consequent impact on defense spending, people will look to lock in their profits and move to more politically favorable sectors.
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A zero-dd, Broker-A special. Besides, I don't like defense right now, since I don't see a lot more on the horizon to bump spending, while there might be some risks of eventual Pentagon retrenchment.
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Dems are coming to power.... I've done well with this stock over the last 3 years but I think it has to cool off in the short to medium term.
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Full of government contracts, very excellent cash flow, but alot of overhead and political hassles to get work. Nothing truly in the assembly line. But expect more sub contracts in future years. Immediately just a bump in the road


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