OA

Orbital Atk Inc

Technology

These Two Defense Tech Plays Are Crucial in Our Battle vs. North Korea's Nukes

On Aug. 30, off the coast of Hawaii, sailors aboard the U.S.S. John Paul Jones tracked, intercepted, and shot down a medium-range ballistic missile.

It was a milestone in our nation's defense system.

Doing so put North Korea and Kim Jong Un on notice that we can shoot down their missiles before they reach the U.S. mainland or one of our Asian-Pacific allies.

And it's about time.

North Korea's ballistic missile and nuclear weapons programs have developed much, much faster than the Pentagon predicted. And that has created a threat that has jump-started our need for advanced missile defense technologies – and spending on them.

Indeed, missile defense technology is so critical to the United States right now that it was a big driver behind Northrop Grumman's just-announced plan to acquire Orbital ATK Inc. for $9.2 billion.

Orbital specializes in the missile defense technology that we so badly need right now.

And so the deal reaffirms our belief that Northrop is the best of the big defense plays out there. Northrop has soared nearly 46% since our first recommendation in April 2016 – including a 10% gain since the Sept. 17 announcement of the Orbital deal.

Today I want to go in-depth on why that Orbital deal reinforces our "case" for Northrop.

And I want to show you how you can take a ride on all the defense industry M&A deals we'll be seeing over the next few years.

This single investment gained just 1.75% in 2015 – but 19% in 2016.

So far this year, it's up nearly 30%.

Now imagine what it's going to do in the future as the Trump administration bulks up our military spending...