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How the Pentagon Will Create Space Travel Profits

The mainstream media was all over Microsoft Corp. (Nasdaq: MSFT) co-founder Paul Allen's recent announcement proclaiming he intends to "transform" the space industry.

But they missed the real story - one that will make a few savvy investors a small fortune.

If you want big profits from the next generation of space travel, keep an eye on new developments at a small but highly respected research arm of the Pentagon.

It's the agency that brought you the Internet. And now it wants to create a whole "new space system."

Don't get me wrong. I believe Allen's investment is an important vote of confidence in for-profit space travel.

But hold on to your wallets folks, because I'd be surprised if he or any investors ever turn a profit from Allen's new venture.

In reality, the story played to America's obsession with celebrities: Famous billionaire says he'll invest up to $200 million in new hybrid space crafts that will launch satellites for industry and government.

Era of Radical Change After reading about Allen's foray into outer space you might have been tempted to jump into some obvious industry stocks.

Orbital Sciences Corp. (NYSE: ORB) boasts some exciting technology. But for now, steer clear of the stock.

Its fortunes still rest too heavily on NASA, which because of budget restraints axed a planned return to the moon.

The so-called Wall Street "pros" may tell you to buy shares of Lockheed Martin Corp. (NYSE: LMT), a big-cap concern that spans the defense-space spectrum.

But other divisions of the Pentagon are cutting back, which means Lockheed will face cash flow challenges for at least the next two years.

So let me tell you what's really going on - I believe a recent announcement by an innovative arm of the Pentagon will become an investment bonanza.

It didn't get much play in the major media because it's hard to see the profit potential in recycling dead satellites still orbiting earth.



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