Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Boeing Company (BA), Lockheed Martin Corporation (LMT), Raytheon Company (RTN) – Brace for Impact: Will the U.S. Launch Missiles at Syria?

Hundreds are dead following a Syrian attack on a Damascus suburb in what looks like a chemical weapons attack. Further, the U.S. warned Syria that if it used chemical weapons, the U.S. would retaliate, and following the attack, the Navy moved warships into striking distance of Syria.

So will the U.S. really fire missiles at Syria? And if it does, what does it mean for defense companies?

U.S. Navy photo by Intelligence Specialist 1st Class Matthew C. Ruble, via Wikimedia Commons.

Tensions run high
Syria has been in the middle of a civil war for a while, and the U.S. has generally supported the rebels because President Bashar al-Assad is known for his human-rights violations, corruption, and disdain for the U.S., as well as using chemical weapons against opposition forces. These actions, among others, resulted in President Obama’s approval of a “light arms” package for Syrian rebels last month — although the latest reports indicate that the weapons haven’t yet been delivered.

Further, according to reports by CBS, the Pentagon has started to prepare for a cruise missile strike on Syrian forces, and Obama said of the latest attack, “This is something that is going to require America’s attention,” as a chemical weapons attack is considered a “crime against humanity” according to international law.

What this means for defense
As I’ve written before, defense companies benefit from a state of war. When North Korea tested missiles, South Korea spent $1.6 billion on The Boeing Company (NYSE:BA)‘s attack helicopters, and the U.S. beefed up missile defense. That benefited Lockheed Martin Corporation (NYSE:LMT)‘s Aegis Missile defense system and will probably benefit Raytheon Company (NYSE:RTN)‘s SM-3, a defense weapon used to destroy incoming ballistic missiles, and Northrop Grumman Corporation (NYSE:NOC), the prime contractor on the Missile Defense Agency’s Joint National Integration Center — a simulating and war-gaming center.

Syria’s apparent willingness to use chemical weapons is concerning for a number of reasons. One, is it puts America in a tough predicament as far as involvement goes. On one hand, Syria violated international law, but on the other hand, America is strapped when it comes to defense spending. Moreover, the current Syrian government is backed by Russia, and the U.S. backs the rebels. As such, U.S. involvement would be likely to strain an already tense relationship between the U.S. and Russia. And if the U.S. does decide to launch missiles at Syria, it’ll probably lead to further and more costly involvement down the line — great for defense companies, not so great for taxpayers.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.