LONG: General Dynamics Corp
There is strong demand for artillery shells. The US army is planning to expand production of these shells six fold. Especially the output of the 155mm rounds which have been "critical for Ukriane in the ongoing counteroffensive" (Washington Post, 2023). Army secretary Christine Wormuth said the US is moving "as fast as humanly possible" to speed up production. Cluster munitions are being sent to Ukraine to fill the supply gap in the meantime to bridge the gap until production can expand to meet demand. Before Russia invaded mainland Ukraine in Feb 2022, US production of these units was 14,000 per month, today it has already reached 24,000 per month. The Pentagon aims to produce 1 million shells a year by fall 2025.
General Dynamics Corp is a major producer of artillery from 105mm to 155mm and should increase in scale accordingly. If you watch Ukraine front lines footage, you will see these types of howitzer and tank munitions feature heavily.
In April Ukrainian parliamentary member Oleksandra Ustinova said the country is using 6,000 to 8,000 155mm shells per day (AP, 2023).
I plan to consider taking profit around $325 USD/share but I expect to hold a position until the next US election at least. In the unlikely event that the American will to support the territorial integrity of Ukriane changes or that there is a ceasefire in the fighting I would reassess at that time. Until then and for the foreseeable future, I remain bullish.
See article from AP on 155mm rounds
apnews.com/article/155mm-howitzer-ukraine-ammunition-russia-7d966c85046b73db2b013f93c51af2a5
See article from Washington post
washingtonpost.com/national-security/2023/08/19/artillery-ammunition-ukraine-pentagon/
General Dynamics Corp is a major producer of artillery from 105mm to 155mm and should increase in scale accordingly. If you watch Ukraine front lines footage, you will see these types of howitzer and tank munitions feature heavily.
In April Ukrainian parliamentary member Oleksandra Ustinova said the country is using 6,000 to 8,000 155mm shells per day (AP, 2023).
I plan to consider taking profit around $325 USD/share but I expect to hold a position until the next US election at least. In the unlikely event that the American will to support the territorial integrity of Ukriane changes or that there is a ceasefire in the fighting I would reassess at that time. Until then and for the foreseeable future, I remain bullish.
See article from AP on 155mm rounds
apnews.com/article/155mm-howitzer-ukraine-ammunition-russia-7d966c85046b73db2b013f93c51af2a5
See article from Washington post
washingtonpost.com/national-security/2023/08/19/artillery-ammunition-ukraine-pentagon/
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