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A full transcript follows the video…..

Lou Whiteman “……..The CBO just updated a study on the triad. They determined almost $500 billion, $494 billion, needs to be spent in the next 10 years on nuclear triad modernization. That’s up considerably, 20% or more, from their 2017 estimate. Part of that is, we have a road map for some of this spending. Part of it is, now, we’re getting into the years where hopefully, those investments will be made. So, some of that increase was expected. But it’s a massive amount, half $1 trillion is going to go into new bombers, new subs, new rockets, new warheads to put on them, plus all the support. It’s a huge area. The details, some of them have to be worked out, but it’s almost guaranteed revenue for some of these companies, the lucky winners of these, because it’s a huge priority for the United States…….

Sciple: Let’s talk about some of these items. Northrop Grumman is developing a new bomber, the B-21. The number that I saw is, between now and 2028, the Pentagon is expected to spend $49 billion on that program. Can you talk about the significance of that aircraft for Northrop Grumman, as well as for our defense arsenal as a country?

Whiteman: That’s the keystone project for Northrop Grumman. They won that bomber. It’s been a slow road……. This is a huge expense. They’re doing their best to modernize it. It’s replacing an aircraft that isn’t that old…….

Whiteman: Naval is a big part of the bull story on General Dynamics ……….

Whiteman: ………The Minuteman is our go-to rocket. It needs to be replaced. That’s the only part of this triad that we don’t know who the eventual winner is. It’s going to be a big deal for either Northrop or Boeing.

………Sciple: Across this nuclear triad, the takeaway for investors is, there’s a lot of money on the table up for grabs………Definitely going to be a bullish sign for these defense contractors going forward.

Whiteman: Exactly right. You can maybe wonder about individual quarters and exact timing, but over the long haul, if you’re a long-term investor, this is pretty close to guaranteed, that these programs are going to be invested in, and this is revenue that’s going to be coming in.   https://www.fool.com/investing/2019/02/05/the-500-billion-push-to-modernize-the-nuclear-tria.aspx