Senate just dropped a bomb on defense contractors 💣
New bill passed committee: NO MORE stock buybacks for defense companies.
This is massive. Defense stocks have been ripping partly on buyback programs. $LMT $RTX $NOC all do this.
If this passes:
- Less artificial price support
- More capital forced into actual operations (or dividends)
- Could pressure valuations short-term
But real talk: defense budgets aren't shrinking. Money will find a way. Watch how they pivot - special dividends? M&A?
Either way, this changes the game for how defense plays work. Not bullish for stock price momentum, but could force better capital allocation long-term.
Keep eyes on $BA $GD too. This isn't priced in yet.