Yesterday's announcement from the Government on its plans for expanding spending on defence is, in my view, a demonstration of profligacy and wholly unwarranted as I noted HERE But Boris and his cohort Princess Nut Nuts have an 80 seat majority so the plans will be voted through. But did anyone know what was coming?
There is something in the air? Is it one of Mr. Putin’s fighter bombers ploughing unannounced down the Channel in the mad February winds, hoping not to be noticed? No its the BAE Systems (BA.) share price at 524p.The Observer Corps - sorry I mean the radar – plots it as not only flying high but also but in new territory.
It is not often that one finds a new method of stock selection. I feel that I may lay claim to that distinction by drawing the world’s attention to the attractions of BAE (BA.) equity back in March and April when I combined conventional technical analysis to historical analysis, in the shape of Kremlinology. (I now rush to confess that this observation is offered in the spirit of good humour and fun, lest anyone actually supposes that I am serious.)
In early March, I said I thought that Mr. Putin and the annexation of the Crimea was a vote of confidence in the long term future of BAE (BA). The current price of 397p is 5.5% - down from that level so I have had another look at this share.
Mr. Putin’s occupation of the Crimea seemed good long term news for defence companies. He did it in Georgia and got away with it and we know that he has ambitions to control much of the Arctic’s mineral and hydrocarbon assets as the ice melts and make its exploitation possible. We know that, because some years ago he arranged for a Russian submarine to plant a Russian flag on the Arctic Ocean bottom as part of a territorial claim. So I have had another look at BAE Systems (BA.)
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