Sunday Funnies: Using up our missiles

Posted Feb 17th 2008 2:40PM by Sheldon Liber
Filed under: After the Bell, Rants and Raves, Sunday Funnies, Headline News, Stocks to Buy, Raytheon Company (RTN)

Two interesting bits of news were released Friday afternoon. First, our government had decided to intercept a descending spy satellite just before it re-enters the atmosphere. They said they were doing this because of "dangerous fuel" but wouldn't this burn up upon re-entry? Then the Defense Department announced that Raytheon Missile Systems, a unit of Raytheon Co. (NYSE: RTN) has won a $1 billion Missile Defense Agency contract boost to make 102 missiles for the Aegis Ballistic Missile Defense System.

Initially this was not enough missiles to help Raytheon's stock, which closed down 1% for the day to $65.65. However, when folks put the stories together in after hours trading RTN jumped 2.5% reaching $67.30 before the trading "pool" was cleared because the "lifeguards" had to go home, spoiling the late night speculators fun.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. To find potential opportunities and verify my track record, read Chasing Value or Serious Money. Disclosure: I do not own shares of RTN.

Tags: Aegis Ballistic Missile Defense System, ballistic missile defense system, Defense Department, DOD, Liber, Missiles, Raytheon, Raytheon Company, RTN, spy satellite