General Dynamics Corp (NYSE:GD)

Defense contractor.

As a major contractor in the Global War on Terrorism GD sales will continue to increase sales. Trusted management will create new technology to integrate warfighter efforts and avoid the pitfalls of other companies we squander government funding.

General Dynamics is among the numerous defense companies that have benefited no end from the US Government’s war on terror in Iraq and Afghanistan. General Dynamics (GD) has its dirty fingers in every pie and operates in 4 segments namely Marine Systems, Combat Systems, Information Systems and Technology and Aerospace.

2006 has been yet another year of war for America and naturally General Dynamics has had an excellent year with revenues increasing 14.7% and crossing 24 billion for the first time. Its 4Q’06 revenues were up 13% and the company reduced debt to 1.2 billion. General Dynamics seems to be a favorite with the US army as it produces its main battle tank Abrams. The backlog at the end of the year totals a mind boggling $43.7 billion which translates nearly two years worth of sales. The company has also received a 7 year $400 million contract for the repair and maintenance of amphibious assault ships from the US Navy.

The good news does not end there. The defense companies must be firing guns into the air in ecstasy as President Bush has asked for no less than $624.6 billion for the Pentagon in 2008, in the new defense budget. Nearly 142 billion will be spent to finance the wars in Iraq and Afghanistan. This is up around 50 billion from 2007. So it does appear that the defense run will continue into the future what with a potential war with Iran looming large.

Additionally, neither the democrats nor the republicans seem to be willing to stick their necks out and announce a feeble defense policy as this might be viewed as a timid approach towards national security. The army budget in 2007 has also increased 60% over 2006. Of course this is ominous news for the Iraqis and their neighbors but it is excellent news if you happen to be a shareholder in General Dynamics. With the company predicting a 9% revenue increase to $26.3 billion in 2007, it seems to be a smooth sailing for General Dynamics.

Defense spending is a big priority with Bush. GD will outperform the market at least until Bush leaves office in January 2009 and we find out what a new administration does with the defense budget.

Best defense contractor

Look for this company to win a ton of miltary contracts especially with Iraq and now possibly Iran, N. Korea and Hugo in Venezuela

Iraq & Afghanistan spending will continue

GD has been acquiring companies for the past several years. The acquisition activity hasn't helped its share price performance but has made it a better company. I expect to see good growth out of this company for a long time to come.

Iraq war need I say more

Nice dividend. All our war systems need replacement and repair thanks to being in an almost constant state of war. They have cut their debt by about 50% over the last two years. They don't dilute shares. Growth rate is 15% per year over the last five years. There is a lot to like with GD.

aerospace/defense iraq gotta love it

$30B Major defense contractor for US and allied armed forces. Manufactures a whole spectrum of defense products and systems, from guns and ammo to battle tanks, attack submarines, surface warships, and command, control, and communications systems, and special mission satellites and payloads. Also manufactures the Gulfstream fleet of business jets for corporations and private individuals. Maintains a funded backlog, currently $32B, which amounts to 14 to 18 months of revenue.
Earnings have steadilly increased over the last six years, while P/E is steady and declining, as is EV/FCF.

My thought: as long as everyone hates America, you better have a defense stock in your portfolio!

10 years

GD has mastered the art of growth-via-acquisition. The company is rated by Aviation Week as the "Best Managed Aerospace company", but GD's even stronger in Information Technology, building equipment for NASA, the military, and government agencies. If you want a company that is rated tops for safety, and quality of product and management, this is it.

This is the best stock to invest in but you have to make a decision when to take your profits and when to stay put. Three months it is going to cross $80.00

Made some smart buys recently. All systems go on weapons and business aviation.

3 month target - $80

I worked for this company (when they built the F-16). It is very stable.