Avon Protection Share Price (AVON)

Actually the sp has not increased much after 95bn approval, and even after rishni announcement. I am only guessing but maybe the market had the US thing already built into sp. As for Rishni, it is ok making grandiose declarations of future spend, but he probably won't be the one who has to actually carry it out!

Yes defence should be up Monday and the woman in congress won't love me anymore

..Avons prospects undoubtedly now helped, either indirectly or directly, by the US house approval of a $61bn aid package for the Ukraine war effort. Be interesting to see how the markets react on Monday (defence sector stocks that is)

From Edison research -

Global geopolitical tensions have sparked higher defence spending by the US DoD

and NATO countries. The need for military protection is critical, with ballistic military

helmet and respirator demand expected by Avon to experience a CAGR of c 4%

from 2024–28, representing a significant boost to Avon’s growth prospects. This is

reflected in its order backlog of over $180m (a decade high), partially attributable to

a rise in head protection orders with c $60m of orders for NG IHPS and over $20m

for ACH GEN II. Delivery ramp-ups combined with inventory turnover improvement

and anticipated $10m annualised cost savings from the Irvine site closure should

help boost operating margins to the targeted c 15% level.

Sold my ISA holding yesterday for a >20 % return after a year (more if you add the dividend).....still holding in my trading account will trim if it falls and average down further if the opportunity arises.

I first bought this at around £20 and averaged down as the price fell.....average now at £9.25 so am happy to watch and wait...

I still think a takeover is likely but have thought this since the current CEO joined