The Boeing Company (BA), General Dynamics Corporation (GD), Textron Inc. (TXT): Defense News Roundup, Apaches for South Korea, Cluster Bombs for Saudi Arabia

Opportunities on the horizon

So much for the contracts that everyone knows about. Now, let’s move on to a contract that may not yet be incorporated into defense contractors’ stock prices.

Late last week — Friday, in fact — we learned that the U.S. Defense Security Cooperation Agency has asked Congress to approve a $1.2 billion sale of airplane parts and services to the Royal Saudi Air Force. DSCA was excruciatingly vague about the precise planes that the Saudis want upgraded. But the sheer size of the deal suggests there may be many defense contractors who benefit. To name just a few likely suspects, both Boeing and Northrop have planes in service in the RSAF — as does Lockheed Martin.

Which of these companies will benefit from this extra $1.2 billion in funding? It’s hard to say. But at least now you know that this money is out there — and that alone puts you a step ahead of the folks on Wall Street.

The article Defense News Roundup: Apaches for South Korea, Cluster Bombs for Saudi Arabia originally appeared on Fool.com and is written by Rich Smith.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics, Lockheed Martin, Northrop Grumman, and Textron.

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