It's a new year and the U.S. military has a whole new set of problems.
After losing to China in 18 simulated “War Games”, it's stepping up and spending billions on a new “living missile” made by a small defense contractor.
The Teaser
In 2017, the U.S. military began running highly classified war games that simulated a potential conflict with China. Dozens of simulations were run and the result was always the same: we lose.
Dylan Jovine is the founder and CEO of Behind the Markets, a company serving up investment research aimed at self-directed individual investors. We've reviewed some of this here in the past, including Jovine's “5G Arrow Company” and “Living Software” Company.
How is this possible you may ask?
While the US military has spent the last 20 years fighting wars in the Middle East, China has spent the last 20 years studying all of its moves. In doing so, they’ve created a new generation of weapons to counter and exploit its weaknesses.
The good news is that’s about to change.
Back in 2018, the then Secretary of Defense drafted a top-secret plan called “Project Overmatch.” It stated that in order to “Overmatch” enemies in the 21st Century, we’re going to need 21st-century weapons.
What most people don't know is that “Project Overmatch” received final approval to be implemented this past March. This gives the Pentagon an extra $37.2 billion to spend on adding next-generation weapons over the next 12 months.
Major money has already been doled out:
It contains the name of the company, the stock symbol, and three additional 21st Century defense contractors are named as well. To get the report, we'll need to become members of Behind the Markets. This costs $39 for new members and comes with “life-changing” stock recommendations every month and a 30-day money-back guarantee.
Why the U.S. Needs This Weapon
Repeated war games have shown, if China were to invade Taiwan tomorrow, it would lose.
There are a host of problems with such a scenario. For starters, Taiwan makes 90% of the world’s most advanced semiconductors. These are the tiny operating brains inside just about any modern device, like our smartphones, brake sensors in our cars, and even our fighter jets.
Our current 20th-century weapons are another. As the Center of Strategic and International Studies, a DC-based think tank showed. The loss of life would be terrible. In their report, they said we’d lose “500 aircraft, 20 surface ships, and 2 aircraft carriers in a matter of weeks.” Losses of this magnitude haven't happened since World War II.
All told, losing that many aircraft and carriers could harm the United States' ability to defend its homeland.
This is why the military has said developing advanced weaponry is their “#1 Priority.” They’ve already put their money where their mouth is by budgeting billions of dollars for these weapons.
3 Rules for Big Defense Profits
According to Dylan and his 30 years of experience with the sector, there are three rules to massive defense profits:
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Only invest in companies that have breakthrough science.
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Invest in defense contractors that have actual defense contracts. This way, you know the technology is solid and they’ve been properly vetted to supply the military.
- Budget approval. You have to make sure Congress has already budgeted the funds for this and in this case that just happened.
Applying these 3 rules has led to some hefty profits. Like Spirit Aerosystems (NYSE: SPR), which gained 1,243%
And Splunk Inc. (Nasdaq: SPLK), which jumped 1,000% over a similar timeframe.
Dylan insists “he's never been more certain of anything in almost thirty years as a professional investor.”
So what is this new weapon the military is spending billions on?
It's called a Hypersonic Missile and it looks something like this:
Scientists call it an entirely new type of weapon that’s virtually “impossible to defend against.”
See, with traditional missiles it’s easy to predict where they will land once they have been fired. We know its trajectory is going from point A to point B, meaning missile defense systems can intercept them.
As for the other three weapons stock picks, Dylan only drops single-sentence clues about each of them.
Legit Opportunity for 36,000% Returns?
As it turns out, Aerojet itself is in the midst of being acquired by L3Harris Technologies in a deal valued at $4.7 billion.
The $58 per share offer is just a 3.6% premium to today's share price as the deal is slated to close sometime in 2023. So it appears the opportunity here is in L3Harris stock going forward.
L3Harris is already a $40 billion dollar company and the United States' sixth-largest defense company. Can it get even bigger? Sure, but even this won't produce the kind of gains Dylan is talking about here.
Quick Recap & Conclusion
- Dylan Jovine says simulated “War Games” show that the United States would lose a hypothetical military showdown with China if it happened today. That is why it is spending billions on a new “living missile” made by a small defense contractor to regain its edge.
- We're talking about Hypersonic Missiles that are “the fastest weapons on earth.” Capable of moving as fast as 25 times the speed of sound.
- Dylan put all the details on these and the company that makes them in a special report called “21st Century Battlefield: 4 Companies Changing Warfare.”
- The Air-Launched Rapid Response Weapon (ARRW) contractor is Aerojet Rocketdyne Holdings Inc. (NYSE: AJRD). It is a subcontractor to Lockheed Martin Corp., which is the lead ARRW government contractor.
- Aerojet Rocketdyne is about to be acquired by L3Harris Technologies in a deal valued at $4.7 billion.
Are there more lucrative opportunities in the defense sector? Let us know in the comment section.
Isn’t it true that Russia already has this weapon, exactly…????!!!!
If Russia has it, China has it. I would speculate that we already have it. We are taunting its development for strategic purposes. IMHO, if China or Russia shot one at us, it would be blown out of the sky with one of our own hypers, before it reached our airspace. (That is based on the assumption that a few “military minds” are still present in the US military command centers.) Over the past 75ish years, that has been the general m.o. of our defense superiority. One question to ask ourselves:
What happenned when the last asian blowhard threatened a President with a missile?
If I remember correctly it was,
“I have a bigger button”.
I believed thats where it ended. (Actually, the asian blowhard called him a “pee pee head”, or a “dotard”, to be exact.)
Not quite sky pie. I picked up a quick 15%before the buyout was announced, but there’s the off chance that the sale won’t go through as last year’s buyout offer by Lockheed didn’t (for less money.
Jovine is not a great stock picker. I lost 85% (yes!) in the 1st 24 hours on Clovis! BOOM! It was not all Jovine’s fault, but I suspect a lot of people lost their shirts on it.
Hi there , Theodore,
I’ve read & re-read, also the re-hashed articles by Dylan Jovine on this same subject & company for quite some time. I’ve tried on numerous occasions to try & find out the company in question to no avail. Once again, you have solved a huge “?” mark on naming the company involved. It’s incredible research by you, &, to divulge the company with your findings. Your findings are extremely appreciated.
Thank you very much.