Some people will tell you that the best defense is a good offense. But I question the wisdom of going on the offensive without good intelligence.
If you're going to invest in the defense sector, it pays to keep a good eye on events throughout the theater of operations. I'll run down the week's top stories in the defense industry -- and give you a preview of coming attractions.
Over in Europe, Boeing
On Monday, we learned that the situation could be even worse. Raising the possibility that EADS will itself choose to terminate the project, Airbus CEO Tom Enders opined: "Better an end with horror than horror without an end." Airbus parent EADS quickly disavowed the sentiment, and affirmed its commitment to build the plane. Yet with supply chain issues continuing to dog the A400M, and EADS itself decrying the plane's "unrealistic timetable" for development, storm clouds are gathering.
An earnings warning, B'Gosh
Speaking of storms, dark clouds eclipsed Oshkosh's
Bad news begets good
If there's one plus to be found in Oshkosh's warning, it's that this allowed rival armored vehicle maker Textron
Bringing up the rear in this week's column, Navistar
- Just what it is that Navistar wants "reviewed"
- What period of time it's talking about
- And basically, any clue whatsoever about what the problem is.
Investors have gone right ahead and assumed the worst -- even if they're not quite clear on just what it might be. They sold off Navistar's stock on the "news," and began buying the stocks of rivals for the M-ATV contract -- Force Protection
Last but not least, a report from Reuters yesterday provides us with a peek over the defense industry's horizon.
According to Reuters, the Indian government is getting ready to kick off its long-awaited competition to choose a new fighter jet. Actually, it'll choose 126 new fighters, in a contract expected to net one lucky defense contractor as much as $10 billion in sales. Tops in the running are Boeing -- which recently landed a deal to sell the subcontinent a batch of P-8I sub-hunting aircraft -- and Lockheed Martin
Don't expect to see new sales land soon. According to press reports, India could take "a full cycle of season" to put the various fighters on offer through their paces. But rest assured: We'll keep track of how this plays out, and make sure that when the time comes to buy -- you'll know what to buy.
Meanwhile, keep the Fool on your radar for all things investing, and defense investing in particular.
Further defense Foolishness: