It's all pure speculation on what the EU member states might be cooking up for some day😅. I remain on the sidelines for the time being in this area (in which I would actually also like to invest). The current valuations are pricing in so much growth that it is currently difficult for me to imagine how smaller companies can grow at the expected speed. We are also talking about the corresponding execution risks here, which in my view cannot yet be estimated at all.
•
1313
•
@All-in-or-nothing I have a similar view, even though I'm also waiting to get started in the armor sector.
As you write, there are currently potential orders in the share prices that these companies simply cannot fulfill with their existing production capacities.
No matter how much money is waved around, if the production capacities are not there in the long term and cannot be created so quickly, it's pretty much a castle in the air.
But to all those who are currently earning money with it:
Congratulations!
As you write, there are currently potential orders in the share prices that these companies simply cannot fulfill with their existing production capacities.
No matter how much money is waved around, if the production capacities are not there in the long term and cannot be created so quickly, it's pretty much a castle in the air.
But to all those who are currently earning money with it:
Congratulations!
•
11
•
@All-in-or-nothing I wonder why you have stayed on the sidelines until now? Maybe it was already too expensive, right?
••
@Alfred16 negative. It's only recently that I've really looked into the whole sector. Armaments was on my radar, but I would have invested in more established players there. In retrospect, I actually saw a real investment case in the drone niche too late and did my research accordingly. However, it feels like there is nothing in the defense sector anywhere in the world that is currently reasonably valued in my view. Imagine Mr. P from Moscow comes up with the idea that peace is not so bad after all. Then all share prices in the armaments sector will plummet in my view, because growth or not, there is simply so much fantasy in the share prices, often without any significant track record for many armaments newcomers, that it could backfire badly.
••
@All-in-or-nothing maybe you're right ... I hope not :-)
•
11
•