Bae Systems Share Price (BA.)

http://www.londonstockexchange.com/exchange/news/dow-jones/news-detail.html?newsId=20100907SN005029

BAE Systems climbed 7.1p to 309.1p after the firm received a $629million contract to upgrade 1,700 Caiman MRAP vehicles. Read more: http://www.thisismoney.co.uk/markets/article.html?in_article_id=513455&in_page_id=3#ixzz0yReOsevU

new contract http://finance.yahoo.com/news/BAE-Systems-Wins-499-Million-bw-1142548413.html?x=0&.v=1 BAE Systems Wins $49.9 Million Contract to Develop On-Board Processor and Integrate DARPA's ARGUS-IR Nighttime Persistant Surveillance System Just in tim too as this was starting to drop a lot below confort zone of £3!

Thanks for your remarks. However, looking at the pitiful number of shares traded, (and the majority of those are borrowed short term for CFDs) represent nothing other in my mind than some broker trying to push down the price really rather deliberately. The contracts that BAE has endure for years. They have a global footprint, and greeat assets and skills to fall back on. BAE is a gaming chip that day-trader play with in the certainty that this compnay will not tank, no matter what happens to Barclays bank or anyone else. I would say that the share price is woefully underpriced, and this depressed state keeps people out in the hope of catching it lower. Also, given the gyrations of the market, a lot of smaller investors are holding off from the market. Patience pays with these big companies. The constraint of programs llike defence spending force them to take a long term view. Investors ought to do the same (unless one is a speculative day trader). Finally, if recent events has proven anything about markets it is that fundamentals are simply not a factor in the share price. We are at present in a casino world, like it or not, until all that cheap money the central banks are stuffing into the pockets of bankers comes to an end. - Best wishes and good luck with your trading.

In the great scheme of things re: The SP, I'm of the opinion that most of that is by-the-by. The price will go up on the certainty of current and future revenue streams. It will go down on 'lost' current revenue and lack of news on forthcoming future revenue. The buying of their own shares has no lasting effect with respect to the trend (at the amount they hold as a piece of the pie). I won't argue that it is a factor, but I'm stating that is not significant enough to make a difference as of its' self. BA. is down on lost revenue from the EU and US dollar markets, they are panning for orders in 'foreign' territories and until we see big orders confirmed the SP will stay low. As I said some weeks ago, they are somewhat over a barrel and any orders they are getting are less lucrative. I can't see that meddling with the number of available shares in the pool is going to do anything to hike up the SP, personally I would love it to tough 350 again (soon). Iraq phased pullout news by the US is adding to the downwards pressure. I think we talked before about the Korean situation brewing. Not sure whether the UK forces would even be involved in that one, the US already is.

Looked at physically, I see there competing constraints here. The first is the exaggerated movement of the share price. Each dip is accompanied by insistent buying from BAE in their share buy-back scheme, hence mopping up all the surplus. As a consequence (and secondly), the diminishing quantity of (real) trading shares will diminish. Thus (thirdly) the price of the stock should spurt up for no fundamental reason other than we reach a critical point (of inflection). If the number of (real) shares traded remains thin (as opposed to the fake borrowed shares traded by speculators and those engaging in CFD bets, etc) then once the share price reaches that plataeu, it should, all physical forces considered, remain there. The only other thing that will knock it back down then are major external shocks, such as political or other shenanigans. Comments on these speculative scenarios presented here will be most welcome.