Dominion Resources, Inc. (D), NRG Energy Inc (NRG), Lockheed Martin Corporation (LMT): Defense News Roundup

Late last week — Friday, in fact — DefenseNews.com reported that the Taiwanese Defense Ministry has just added $187 million to its budget for 2014/2015, to purchase a pair of used Perry-class frigates from the U.S. Navy. Taiwan already has eight Perrys in its fleet, built locally by Taiwanese shipbuilder China Shipbuilding.

Perry-class frigate USS Carr (FFG 52) off the Liberian coast. Source: Wikimedia Commons.

Conceivably, the two Perrys Taiwan wants to buy could also be built locally. But last year, GlobalSecurity.org reported that the Taiwanese defense minister was negotiating a purchase of decommissioned USN frigates instead (estimating the cost at roughly $239 million). So that seems to be the more likely theory. The vessels are likely to receive retrofitting, presumably at General Dynamics Corporation (NYSE:GD)‘ Bath Iron Works, one of their original builders, as well as upgrades prior to delivery, in particular the addition of AN/SQR-19 Towed Array Sonar systems from Lockheed Martin Corporation (NYSE:LMT).

While the details aren’t yet all clear, and no notification of a sale has yet been submitted to Congress for approval, just knowing that the contracts are “out there” puts you a step ahead of the folks on Wall Street.

The article Defense News Roundup: Will the U.S. Army Go Solar? originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends AeroVironment and Dominion Resources (NYSE:D) and owns shares of AeroVironment, General Dynamics, Lockheed Martin, and Raytheon. 

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