The U.S. Defense Security Cooperation Agency notified Congress Thursday of plans to sell the Iraqi Army as many as 500 AGM-114K/R Hellfire Missiles. Including the value of associated equipment, parts, training, and logistical support, this sale could be worth $82 million to Hellfire manufacturer and principal contractor Lockheed Martin (NYSE:LMT).
As DSCA explained in its notice, the sale of these weapons "will contribute to the foreign policy and national security of the United States by helping to improve the security of a strategic partner" -- Iraq -- which is currently under attack by al-Qaeda elements infiltrating the company from war-torn Syria.
"Iraq will use the Hellfire missiles to help improve the Iraq Security Forces' capability to support current on-going ground operations," said DSCA. If any missiles are left over after these operations conclude, "Iraq will also use this capability in future contingency operations."
According to DSCA, "There will be no adverse impact on U.S. defense readiness as a result of this proposed sale." Nor will the sale "alter the basic military balance in the region."
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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