Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Is Natural Gas Price Ready For An April Rally? - 8th Apr 20
Market Predictions And The Business Implications - 8th Apr 20
When Will UK Coronavirus Crisis Imrpove - Infections and Deaths Trend Trajectory Analysis - 8th Apr 20
BBC Newsnight Focuses on Tory Leadership Whilst Boris Johnson Fights for his Life! - 8th Apr 20
The Big Short Guides us to What is Next for the Stock Market - 8th Apr 20
USD Index Sheds Light on the Upcoming Gold Move - 8th Apr 20
The Post CoronaVirus New Normal - 8th Apr 20
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

How to Profit from North Korea with Nuclear Missiles

Companies / Investing 2013 Apr 15, 2013 - 10:37 AM GMT

By: Money_Morning

Companies

William Patalon writes: For months now, North Korea has been threatening to launch a nuclear missile strike against the U.S. mainland.

However, the Pentagon has been quite confident in its assertions that the reclusive country doesn't have the technology to actually put a nuclear warhead atop a ballistic missile.


And even if North Korea were able to match a nuke with an ICBM, our military leaders said it could never reach the U.S. mainland.

But we knew better than to be so dismissive.

North Korea has sold so many missiles to Iran, Syria, Pakistan and others that intelligence analysts refer to the arms-dealer as "Missiles "R' Us."

That's why - back in February and March, in reports in both Private Briefing and Money Morning - we cautioned that North Korea's weapons technologies were likely much more advanced than the Pentagon would have us believe.

Now it looks like we were right to be so cautious.

A new U.S. intelligence analysis - revealed Thursday during a dramatic confrontation on Capitol Hill - says the Pentagon's key spy agency believes North Korea does have nuclear weapons that it can deliver via ballistic missiles.

Colorado Republican Congressman Doug Lamborn - reading what he says was an unclassified paragraph from a secret Defense Intelligence Agency (DIA) assessment that had been provided to some congressional officials - confronted the chairman of the Joint Chiefs of Staff with the revelation during a Thursday hearing.

Gen. Martin Dempsey, the Joint Chiefs chairman, appeared so surprised by what Lamborn had to say that he wasn't able to respond.

Later trying to downplay the news in Rep. Lamborn's queries, Pentagon Press Secretary George Little said, "While I cannot speak to all the details of a report that is classified in its entirety, it would be inaccurate to suggest that the North Korean regime has fully tested, developed or demonstrated the kinds of nuclear capabilities referenced."

But the message is still pretty clear: When it comes to North Korea it doesn't pay to be passive.

We're by no means telling you that it's time to panic.

But it does pay to be prepared-both from a national security standpoint and as it relates to your investments.

And because of the evolving North Korean threat, there is one company that's going to be a clear beneficiary of increased government spending on missile defense.

I'm talking about aerospace player GenCorp Inc. (NYSE: GY).

Here's why.

As our military continues to develop anti-missile systems to guard against missile threats, it's highly probable that GenCorp's Aerojet propulsion systems will occupy a very high spot on the Pentagon's shopping list.

On Feb. 13, in fact, Aerojet announced that its propulsion systems supported a "successful intercept test" of a Raytheon SM-3 guided missile off the coast of Hawaii. Meanwhile, Aerojet motors also provided propulsion for the SM-3's first and second stages.

The SM-3 can be based on land or at sea, and is a key element of the Obama administration's "Phased Adaptive Approach," which focuses on protecting the U.S. mainland from first-generation ICBMs. It will also protect American allies and U.S. "assets" around the world.

"Aerojet's propulsion systems have performed successfully on every SM-3 flight and intercept test to date," said John Myers, Aerojet's vice president of tactical programs. "This test further demonstrates the reliability of our tactical missile product line."

At present, Aerojet is the only U.S. propulsion firm that makes both solid rocket motors and liquid rocket engines. And the company wants to make certain that Aerojet remains the sector's Top Gun.

That's why, just last year, for instance, GenCorp dropped $550 million to acquire Pratt & Whitney Rocketdyne from United Technologies Corp. (NYSE: UTX).

Rocketdyne makes space-launch vehicles, missile-defense systems and advanced hypersonic engines. To date, it has powered nearly all of NASA's manned spacecraft, as well as the space probes that have traveled to nearly every planet in our solar system.

But I'm not the only one who thinks that GenCorp offers investors one heck of a profit upside. In a mid-Februaryappearance on CNBC's popular Squawk Box program, billionaire investor Mario Gabellinamed it as one of his two "stocks-that-would- double."

However, in making his case for GenCorp - in addition to the Rocketdyne deal- Gabelli also cited a second stock-price catalyst ... though this one was decidedly terrestrial in nature.

I'm talking about real estate.

By engaging in such activities as re-zoning, entitlement, leasing and outright sales, GenCorp is monetizing its excess-real-estate assets.

As Gabelli told his CNBC audience (which included me), GenCorp also has "significant acreage" in the Sacramento, Calif. area.

"And real estate is booming," he said.

So with GenCorp, there appear to be several potential "triggers."

"They bought Rocketdyne and they're closing on that," Gabelli said. "And that business - the basic manufacturing business, which has short-term hiccups - will earn about 70 cents in three or four years."

And that interview was before all of the recent North Korean saber rattling.

Indeed, when you consider these ingredients en masse, there's a very clear recipe for this $788 million small-cap firm to double in value over the next few years.

[Editor's Note: if you would like to join the thousands of investors Private Briefing has already helped to make big money in the markets, now you can do it at no cost to you.

In just 18 months, Private Briefing recommendations have generated two triples, three doubles and nearly 70 winners. To learn more about our free trial offer click here now.]

Source :http://moneymorning.com/2013/04/15/if-north-korea-has-nuclear-missiles-heres-the-one-stock-you-need-to-own/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules